30802 Coast Unit F9

Laguna Beach, CA 92651

$164,000B-

2 bd · 2.0 ba · 1,100 sqft · Built 1999 · Manufactured · Active · 192 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,827/mo
• Mortgage (P&I): −$860
• Tax + insurance: −$340
• HOA: −$0
• Vac / Maint / Mgmt: −$1,014
• Net cashflow: $2,613/mo
• Annual: $31,357/yr
• Cap rate: 25.90%
• Cash-on-cash: 70.02%
• DSCR: 4.12
• 1% rule: 2.94%
• Cash to close: $45,920

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $164k. Condition is rated poor.
• At list price, monthly cash flow is $3k ($31k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $164k).
• It's been on market 192 days — a 12% lower offer ($144k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $144k (12.0% below list) — sets the bar for market timing.
• In year one you build about $11k of equity ($1k loan paydown + $10k appreciation (6.2% local appreciation)).
• Location reads 68/100 on livability (#276 in CA) — a middle-class / working-renter tenant base. Strengths: 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.
• Zoned schools: El Morro Elementary (416 students, 23% FRL); Thurston Middle (537 students, 21% FRL); Laguna Beach High (930 students, 20% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: Rents soft (-0.2%/yr); 281 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 30d on market — plan ~3-4 weeks tenant-placement turnaround); 48% 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.
• 11 sale attempts since 25y ago; this cycle's ask has dropped $225k (58%) 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 $46k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$39k 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 25.9% vs local median 0.9% 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.

Questions for listing agent

• It's been on market 192 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — No visible roof in the photos, but the satellite image shows a damaged roof. Likely needs replacement.
• Major: exterior siding — No visible exterior in the photos, but the satellite image shows damaged siding. Likely needs replacement.
• Major: interior walls/paint — No visible interior walls/paint in the photos, but the satellite image shows a damaged roof. Likely needs repainting.
• Major: HVAC/mechanicals — No visible HVAC/mechanicals in the photos, but the satellite image shows a damaged roof. Likely needs replacement.
• Major: landscaping/curb appeal — No visible landscaping/curb appeal in the photos, but the satellite image shows a damaged roof. Likely needs landscaping and curb appeal improvements.