68040 Club Cir · Desert Hot Springs, CA 92240

$560,000

12 bd · 9.0 ba · 1,950 sqft · MultiFamily · 163 Days on market

Built 1967 8,276 sqft lot $287/sqft · 15% above area Est $488k · 15% over

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Why this score? — see what drove the D- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +18.6/30.0
• DSCR +5.8/10.0
• 1% rule +3.7/10.0
• Rent growth +3.4/5.0
• Schools +2.7/10.0
• Livability +2.5/5.0
• Condition / age +2.5/5.0
• ARV discount +0.9/15.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 3 units. estimate disagrees with records

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks MLS

Le Investment Group is pleased to present this three (3) unit triplex located in Desert Hot Springs, CA. The property is situated within a well-maintained neighborhood in the city’s desirable Spa Zone. Offered at $530,000, the asset features a strong unit mix of two (2) 1-bedroom/1-bath units and one (1) 2-bedroom/1-bath unit, providing functional layouts and consistent in-place income. The property is currently operating at a 7.17% cap rate. This investment offers flexibility for both investors and potential owner-occupants, with the ability to leverage residential financing while benefiting from diversified income across three units.

Key facts

• 8,276 sq ft lot
• Built 1967
• Listed 162 days

What this means for you Summary

Snapshot

• This is a 2×1bd/1ba + 1×2bd/1ba units multifamily listed at $560k.

Deal economics

• At list price, monthly cash flow is $540 ($6k/yr) — positive. Per door: $180/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $486k (13.2% below list).
• Recommended offer: $486k (13.2% below list) — sets the bar for 1% rule.
• Cap rate 7.5% vs local median 4.0% in Desert Hot Springs — 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.

Location & tenants

• Location reads 49/100 on livability (#1,149 in CA) — a working-class tenant base; expect higher turnover. Strengths: housing B+; Watch: crime D+, schools F, amenities F.
• Palm Springs Unified (suburban): math 21% / reading 42% proficiency, ranked #328 of 517 in CA (top 63%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 73% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising (+3.7%/yr); 515 active listings in the ZIP; 9,195 units permitted in Riverside County in 2024 (1,512 in 5+ unit buildings).
• At $4,860/mo this rent would consume 108% of the median local household income ($54k/yr) (locally 2095% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $17k of value loss. Plan a longer hold.
• Riverside County population projected at +22% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 163 days — a 12% lower offer ($493k) is reasonable based on typical stale-listing flexibility.
• 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.

Risks & watch-outs

• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $486,000 (13.2% below list)

Questions for the listing agent

1. It's been on market 163 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Built in 1967 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
5. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
6. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
7. 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?
8. 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?
9. 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?
10. 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.
11. 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.
12. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 0.87% ✗
• Cap rate: 7.45%
• Cash-on-cash: 4.13%
• DSCR: 1.18
• GRM: 9.6

CMA / ARV

• ARV (median comp): $487,952
• List price: $560,000
• Delta: 14.77%
• Verdict: OVERPRICED
• Comps: 6 within 1.0 mi

Projected returns pro-forma

-3.0% appreciation · 3.66% rent growth · sell at horizon

5-year hold

• IRR: -9.2%
• Equity multiple: 0.66×
• Total profit: $-53,373
• Equity at exit: $83,498

10-year hold

• IRR: 0.9%
• Equity multiple: 1.07×
• Total profit: $10,203
• Equity at exit: $48,419

Cash invested: $156,800 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 18 Strongly Tenant-Friendly
• State California: 18 Strongly Tenant-Friendly · D+13
• County: — inherits STATE
• City: — inherits STATE

AB1482 statewide rent cap (10% + CPI). Cities (SF/LA/Berkeley) layer stricter rules. Just-cause statewide.

Methodology + full state rankings →

ZIP-level market 92240

• Home prices YoY: -19.6%
• Rents YoY: 3.7%
• Active inventory: 515
• Price-to-rent: 29.4×

Monthly cashflow live

• Estimated rent: $4,860 high
• Mortgage (P&I): −$2,937
• Tax from tax record: −$129 /mo · $1,551/yr
• Insurance: −$233
• HOA: −$0
• Vacancy / Maint / Mgmt: −$1,021
• Net cashflow: $540

Break-even live

Break-even rent $4,176

Max offer price $560,000

Occupancy floor 84%

3-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 2× units	1	1	$3,172
1× unit	2	1	$1,688
Total (3 units)			$4,860

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $140,000
• Closing costs: $16,800
• Reserves months: —
• Total cash needed: —

Listing history 9 events

1. 2026-06-01
   days on market $560,000 Active 163 DOM
2. 2026-05-31
   days on market $560,000 Active 162 DOM
3. 2026-04-15
   status Active 649-char remark

   Show marketing remark (649 chars)

   Le Investment Group is pleased to present this three (3) unit triplex located in Desert Hot Springs, CA. The property is situated within a well-maintained neighborhood in the city’s desirable Spa Zone. Offered at $530,000, the asset features a strong unit mix of two (2) 1-bedroom/1-bath units and one (1) 2-bedroom/1-bath unit, providing functional layouts and consistent in-place income. The property is currently operating at a 7.17% cap rate. This investment offers flexibility for both investors and potential owner-occupants, with the ability to leverage residential financing while benefiting from diversified income across three units.

4. 2026-04-15
   price $560,000 649-char remark

   Show marketing remark (649 chars)

   Le Investment Group is pleased to present this three (3) unit triplex located in Desert Hot Springs, CA. The property is situated within a well-maintained neighborhood in the city’s desirable Spa Zone. Offered at $530,000, the asset features a strong unit mix of two (2) 1-bedroom/1-bath units and one (1) 2-bedroom/1-bath unit, providing functional layouts and consistent in-place income. The property is currently operating at a 7.17% cap rate. This investment offers flexibility for both investors and potential owner-occupants, with the ability to leverage residential financing while benefiting from diversified income across three units.

5. 2026-03-27
   status Active 649-char remark

   Show marketing remark (649 chars)

   Le Investment Group is pleased to present this three (3) unit triplex located in Desert Hot Springs, CA. The property is situated within a well-maintained neighborhood in the city’s desirable Spa Zone. Offered at $530,000, the asset features a strong unit mix of two (2) 1-bedroom/1-bath units and one (1) 2-bedroom/1-bath unit, providing functional layouts and consistent in-place income. The property is currently operating at a 7.17% cap rate. This investment offers flexibility for both investors and potential owner-occupants, with the ability to leverage residential financing while benefiting from diversified income across three units.

6. 2025-11-19
   price $530,000 649-char remark

   Show marketing remark (649 chars)

   Le Investment Group is pleased to present this three (3) unit triplex located in Desert Hot Springs, CA. The property is situated within a well-maintained neighborhood in the city’s desirable Spa Zone. Offered at $530,000, the asset features a strong unit mix of two (2) 1-bedroom/1-bath units and one (1) 2-bedroom/1-bath unit, providing functional layouts and consistent in-place income. The property is currently operating at a 7.17% cap rate. This investment offers flexibility for both investors and potential owner-occupants, with the ability to leverage residential financing while benefiting from diversified income across three units.

7. 2025-11-06
   listed $550,000 Active 649-char remark

   Show marketing remark (649 chars)

   Le Investment Group is pleased to present this three (3) unit triplex located in Desert Hot Springs, CA. The property is situated within a well-maintained neighborhood in the city’s desirable Spa Zone. Offered at $530,000, the asset features a strong unit mix of two (2) 1-bedroom/1-bath units and one (1) 2-bedroom/1-bath unit, providing functional layouts and consistent in-place income. The property is currently operating at a 7.17% cap rate. This investment offers flexibility for both investors and potential owner-occupants, with the ability to leverage residential financing while benefiting from diversified income across three units.

8. 2025-07-25
   soldstatus $1,350,000
9. 1996-04-12
   soldstatus $48,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast CA · Resets to sale price

• Current annual tax: $1,551 · $129/mo
• Projected year-2 tax: $4,256 · $355/mo
• Expected delta: +$2,705/yr (+$225/mo · 174.4%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (shaded) · 0% chance over 30 yrs
• 🔥 Wildfire 6/10 Major
• 🌡 Heat 8/10 Severe 7 d/yr ≥107°F today · 20 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 5/10 Major 7 unhealthy d/yr today · 10 by 30 yrs out

Taxation est. · year 1

• Rental income: $58,320
• − Mortgage interest: −$31,369
• − Property taxes: −$1,551
• − Insurance: −$2,800
• − Repairs & maintenance: −$4,666
• − Management: −$4,666
• − Depreciation: −$16,291
• Taxable loss: −$3,022
• Est. tax savings @ 24.0%: +$725
• After-tax cash flow: $7,207/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Palm Springs Unified
• NCES district ID: 0629550
• Math proficiency: 21% ▼ -7.00%
• Reading proficiency: 42% ▬ 0.00%
• Median HH income: $43,638
• Composite: 26.76/100
• National rank: #7131
• State rank: #328 of 517 in CA

Livability — Desert Hot Springs

• Score: 49/100
• State rank: #1149
• US rank: #25774

Category grades

Amenities F Commute F Cost of living D- Crime D+ Employment F Housing B+ Health & safety F User ratings B

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Desert Hot Springs, CA
• County: Riverside County · 2,287,001 people
• City population: 41,615
• Metro: Riverside-San Bernardino-Ontario, CA
• Population (ZIP): 41,615
• Household income: $54,023
• Rent vs Own: 43.2% rent · 56.8% own
• Severe rent burden: 2095.0

Population outlook (Riverside County) Hauer SSP2

• Today (2025): 2,664,475 people
• By 2030: 2,802,692 · +5.2%
• By 2040: 3,050,904 · +14.5%
• By 2050: 3,256,783 · +22.2%
• By 2075: 3,655,058 · +37.2%
• By 2100: 3,766,594 · +41.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Majority Hispanic (64%)
• Race & ethnicity: Hispanic / Latino 64% Two or more races 27% White 23% Black 7% Native American 2% Asian 2%
• Hispanic origin (detail): Mexican 53%
• Common ancestry: Lithuanian 1% Romanian 1% Italian 1%
• Foreign-born: 27% · Canada, Vietnam
• Languages at home: 47% English-only · Spanish 50% Russian/Polish/Slavic 1%

Political lean MEDSL · Riverside

• 2024 margin: Toss-up / Even · D 48.0% · R 49.3% · Other 2.6%
• 2008→2024 swing: -3.6pp toward R · 2008: 2.3pp · 2024: -1.3pp
• All cycles: 2024: R+1.3 2020: D+8.0 2016: D+4.3 2012: R+0.4 2008: D+2.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -102.10%
• Current HPI: 418.4691
• Rent YoY: ▲ 3.66%
• Metro: Riverside-San Bernardino-Ontario, CA
• State GDP YoY: ▲ 3.21%
• F500 in state: 116

Industry mix (Fortune 500 HQ in CA)

Industry	F500 HQs	Revenue
▸Technology	27	$1,492B
▸Financial Services	3	$174B
▸Retail	3	$44B
▸Insurance	3	$26B
▸Media / Entertainment	2	$115B
▸Pharmaceuticals / Biotech	2	$62B

Price history

+1066.7% since first listed

7 events — show timeline

• 2026-04-15 Relisted — CRMLS
• 2026-04-15 Price Changed $560,000 CRMLS
• 2026-03-27 Relisted — CRMLS
• 2025-11-19 Price Changed $530,000 CRMLS
• 2025-11-06 Listed $550,000 CRMLS
• 2025-07-25 Sold (Public Records) $1,350,000 Public Records
• 1996-04-12 Sold (Public Records) $48,000 Public Records

Property tax history

+1.7%/yr

Latest (2025): $1,551 · -44.8% YoY. Source: county tax records.