30802 Coast Hwy Unit F2

Laguna Beach, CA 92651

$399,900B+

2 bd · 1.0 ba · 950 sqft · Built 2015 · Manufactured · Active · 166 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,813/mo
• Mortgage (P&I): −$2,097
• Tax + insurance: −$733
• HOA: −$0
• Vac / Maint / Mgmt: −$1,221
• Net cashflow: $1,762/mo
• Annual: $21,146/yr
• Cap rate: 11.78%
• Cash-on-cash: 19.60%
• DSCR: 1.87
• 1% rule: 1.45%
• Cash to close: $111,972

Investor read

• This is a 2-bed/1.0-bath manufactured listed at $400k. Condition is rated good.
• At list price, monthly cash flow is $2k ($21k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $400k).
• It's been on market 166 days — a 12% lower offer ($352k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $352k (12.0% below list) — sets the bar for market timing.
• In year one you build about $28k of equity ($3k loan paydown + $25k appreciation (6.2% local appreciation)).
• Location reads 68/100 on livability (#276 in CA) — a middle-class / working-renter tenant base. Strengths: schools A+, employment A+, crime A; Watch: commute D+, amenities F, cost of living F.
• Laguna Beach Unified (suburban): math 25% / reading 25% proficiency, ranked #343 of 517 in CA (top 66%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; only 8% free/reduced lunch — higher-income household profile.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: Rents soft (-0.2%/yr); 229 active listings in the ZIP; 35 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); 49% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 6,974 units permitted in Orange County in 2024 (3,839 in 5+ unit buildings).
• Orange County population projected at +14% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 11y ago; this cycle's ask has dropped $57k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (6.2% appreciation + 0.0% rent growth), your $112k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$44k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 11.8% vs local median 0.7% in Laguna Beach — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
• At $5,813/mo this rent would consume 48% of the median local household income ($147k/yr) (locally 1265% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 166 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.