57393 Lupine Dr

Yucca Valley, CA 92284

$525,000C

6 bd · 6.0 ba · 3,278 sqft · Built 1987 · MultiFamily · Active · 80 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,537/mo
• Mortgage (P&I): −$2,753
• Tax + insurance: −$1,011
• HOA: −$0
• Vac / Maint / Mgmt: −$1,163
• Net cashflow: $610/mo
• Annual: $7,326/yr
• Cap rate: 7.97%
• Cash-on-cash: 6.01%
• DSCR: 1.27
• 1% rule: 1.05%
• Cash to close: $147,000

Investor read

• This is a 3 × 2-bed/2.0-bath units multifamily listed at $525k.
• At list price, monthly cash flow is $610 ($7k/yr) — positive. Per door: $203/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $525k).
• It's been on market 80 days — a 6% lower offer ($494k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $494k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#566 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+; Watch: cost of living D+, crime D-, amenities D-.
• Morongo Unified (town): math 15% / reading 38% proficiency, ranked #395 of 517 in CA (top 76%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Onaga Elementary (580 students, 58% FRL); La Contenta Middle (math 11% / reading 27%, grade F, #426 of 498 statewide, top 86%, 650 students, 72% FRL); Yucca Valley High (math 15% / reading 49%, grade F, #674 of 1,170 statewide, top 59%, 1,264 students, 64% FRL).
• Watch-outs: flood insurance adds $125/mo.
• Market conditions: Rents rising fast (+4.1%/yr); 573 active listings in the ZIP; 5,458 units permitted in San Bernardino County in 2024 (1,500 in 5+ unit buildings).
• San Bernardino County population projected at +15% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 20y ago; this cycle's ask has dropped $70k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $429k; 22% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: in FEMA flood zone A (mandatory federal flood insurance); moderate wildfire risk; extreme-heat days projected 8→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.0% vs local median 3.6% in Yucca 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.
• At $5,537/mo this rent would consume 114% of the median local household income ($58k/yr) (locally 1132% 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 80 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?