1755 Heywood St #203

Simi Valley, CA 93065

$380,000D-

2 bd · 2.0 ba · 1,036 sqft · Built 2018 · Condo · Active · 67 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,981/mo
• Mortgage (P&I): −$1,993
• Tax + insurance: −$476
• HOA: −$318
• Vac / Maint / Mgmt: −$626
• Net cashflow: $-432/mo
• Annual: $-5,180/yr
• Cap rate: 4.93%
• Cash-on-cash: -4.87%
• DSCR: 0.78
• 1% rule: 0.78%
• Cash to close: $106,400

Investor read

• This is a 2-bed/2.0-bath condo listed at $380k.
• At list price, monthly cash flow is $-432 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $304k (20.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $298k (21.6% below list).
• It's been on market 67 days — a 6% lower offer ($357k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $298k (21.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#456 in CA) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing B; Watch: amenities F, commute D-, cost of living F.
• Simi Valley Unified (suburban): math 36% / reading 49% proficiency, ranked #170 of 517 in CA (top 33%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hollow Hills Elementary (math 54% / reading 68%, grade B, #222 of 1,571 statewide, top 14%, 637 students, 38% FRL); Sinaloa Middle (math 28% / reading 47%, grade F, #166 of 498 statewide, top 34%, 775 students, 49% FRL); Royal High (math 17% / reading 42%, grade F, #750 of 1,170 statewide, top 66%, 1,973 students, 41% FRL) — zoned schools average 43% FRL vs 25% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents flat; 210 active listings in the ZIP; 17 comparable units currently listed for rent nearby; rentals at typical pace (median 18d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 1,759 units permitted in Ventura County in 2024 (1,196 in 5+ unit buildings).
• Ventura County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: extreme-heat days projected 8→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.9% vs local median 3.0% in Simi Valley — 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.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 67 days. Have you received any prior offers? Is the seller open to a 22% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.