28890 Lilac Rd #80

Valley Center, CA 92082

$179,000C+

2 bd · 2.0 ba · 1,140 sqft · Built 1968 · Manufactured · Active · 312 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,096/mo
• Mortgage (P&I): −$939
• Tax + insurance: −$298
• HOA: −$0
• Vac / Maint / Mgmt: −$650
• Net cashflow: $1,209/mo
• Annual: $14,503/yr
• Cap rate: 14.40%
• Cash-on-cash: 28.94%
• DSCR: 2.29
• 1% rule: 1.73%
• Cash to close: $50,120

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $179k. Condition is rated fair.
• At list price, monthly cash flow is $1k ($15k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $179k).
• It's been on market 312 days — a 12% lower offer ($158k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $158k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 52/100 on livability (#1,017 in CA) — a working-class tenant base; expect higher turnover. Strengths: employment A+, housing B; Watch: commute C-, amenities F, cost of living F.
• Valley Center-Pauma Unified (rural): math 16% / reading 34% proficiency, ranked #367 of 517 in CA (top 71%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Lilac (math 21% / reading 32%, grade F, #943 of 1,571 statewide, top 60%, 454 students, 60% FRL); Valley Center Middle (math 11% / reading 31%, grade F, #408 of 498 statewide, top 82%, 756 students, 41% FRL); Valley Center High (math 24% / reading 60%, grade F, #472 of 1,170 statewide, top 42%, 1,181 students, 38% FRL) — zoned schools at 46% FRL track the district average.
• Market conditions: 167 active listings in the ZIP; high-income renter base; 11,759 units permitted in San Diego County in 2024 (7,244 in 5+ unit buildings).
• San Diego County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 3y ago 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.
• Current owner paid $145k; 23% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $50k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: severe wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 14.4% vs local median 2.6% in Valley Center — 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 312 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?
• Built in 1968 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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)

• Minor: Kitchen cabinets — The cabinets appear dated and could be updated with modern designs.
• Minor: Bathroom backsplash — The backsplash is a light pink color and could be replaced with a more modern design.
• Minor: Landscaping — The landscaping is somewhat sparse and could be improved with additional plants and greenery.