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4266 Morrell St, San Diego, CA 92109
Priced too high to cash-flow with a loan — an equity or tax play, not income.
Investment potential
Your scenario · adjust the levers below or open advanced settings to see how returns change
$117,789
$9,816/mo · at 63% occupancy & $606/night
-$52,502
-$4,375/mo after costs & mortgage
Cap rate
2.9%
Cash-on-cash
-11.5%
DSCR
0.48
Confidence
Your assumptions
Revenue
$117,789/yr
Market avg: $117,789/yr · 63% occ · $606 ADR
Financing
$100,324/yr
Operating costs
$69,966/yr
How this property compares to similar short-term rentals nearby.
Comparable set · 50 properties
$344–$1,014
Median $604
36%–92%
Median 64%
$62.1K–$313.5K
Median $101.2K
210–365
Median 293
This property · $117.8K
Comparable properties (50)
Cash flow potential Low · Appreciation potential Medium
365 days available · 281 days booked ·
365 days available · 290 days booked ·
294 days available · 261 days booked ·
365 days available · 232 days booked ·
365 days available · 262 days booked ·
358 days available · 304 days booked ·
256 days available · 219 days booked ·
365 days available · 181 days booked ·
210 days available · 177 days booked ·
365 days available · 184 days booked ·
254 days available · 210 days booked ·
302 days available · 205 days booked ·
292 days available · 149 days booked ·
280 days available · 174 days booked ·
251 days available · 169 days booked ·
230 days available · 162 days booked ·
238 days available · 159 days booked ·
228 days available · 161 days booked ·
315 days available · 187 days booked ·
307 days available · 141 days booked ·
324 days available · 172 days booked ·
301 days available · 138 days booked ·
316 days available · 225 days booked ·
226 days available · 179 days booked ·
313 days available · 225 days booked ·
297 days available · 138 days booked ·
255 days available · 142 days booked ·
329 days available · 197 days booked ·
328 days available · 166 days booked ·
365 days available · 175 days booked ·
254 days available · 138 days booked ·
282 days available · 175 days booked ·
293 days available · 151 days booked ·
220 days available · 176 days booked ·
275 days available · 172 days booked ·
290 days available · 160 days booked ·
240 days available · 163 days booked ·
233 days available · 175 days booked ·
271 days available · 141 days booked ·
255 days available · 160 days booked ·
239 days available · 145 days booked ·
234 days available · 108 days booked ·
299 days available · 136 days booked ·
329 days available · 215 days booked ·
303 days available · 132 days booked ·
244 days available · 160 days booked ·
300 days available · 131 days booked ·
263 days available · 124 days booked ·
299 days available · 147 days booked ·
284 days available · 140 days booked ·
Revenue and occupancy reflect Chalet's modeled estimates from observed booking activity for comparable active listings. Individual results vary with management, seasonality, and pricing.
Who this property is for
The same property is a great buy for one investor and a trap for another. Here's the honest read.
1031 / high-equity buyer
~$413.8K
Year-1 tax shield
Buying with cash or low leverage removes the debt-coverage problem entirely, so the thesis rests on appreciation plus a large first-year write-off. At roughly 25% of purchase price, the shield is substantial enough to carry the deal on its own.
Price-disciplined buyer
$798.7K
Break-even purchase price
Break-even is ~52% below the Zestimate, a discount sellers in San Diego rarely accept. Treat the number as a walk-away line rather than an opening offer.
DSCR cash-flow buyer
0.48
DSCR at asking
At asking price the property doesn't cover its own debt service, so it won't qualify for DSCR financing as modeled. If you need cash flow from day one, look at a mid-term-rental fallback or a different San Diego submarket.
For a buyer who materially participates and qualifies for the STR tax treatment.
$413.8K
Estimated first-year deduction · range $343.5K–$471.8K
Why this matters here
At a marginal bracket, this deduction can be worth $127.1K–$174.6K in estimated federal tax saved.
This only applies if you meet the IRS material-participation tests for short-term rentals and are not using a full-service property manager.
Estimate, subject to CPA review. Cost-segregation percentages shown here are illustrative and depend on an actual study of the property.
California does not conform to federal bonus depreciation, so your state tax treatment will differ from the federal figures above.
Chalet can introduce a cost-segregation partner — this is not tax, legal, or financial advice.
How cash-on-cash return moves with purchase price. The marked line is break-even (1.0 DSCR).
At this price: cash-on-cash -11.5%, DSCR 0.48, cash flow -$52,502/yr
| Price vs asking | Price | Cash-on-cash | DSCR | Band |
|---|---|---|---|---|
| -25% | $1,256,625 | -7.9% | 0.64 | Below break-even |
| -22% | $1,306,890 | -8.5% | 0.61 | Below break-even |
| -15% | $1,424,175 | -9.6% | 0.56 | Below break-even |
| -8% | $1,541,460 | -10.6% | 0.52 | Below break-even |
| Asking | $1,675,500 | -11.5% | 0.48 | Below break-even |
| +8% | $1,809,540 | -12.3% | 0.44 | Below break-even |
| +15% | $1,926,825 | -13.0% | 0.41 | Below break-even |
Break-even price
$798,679
~52% under Zestimate. Where this property reaches 1.0 DSCR and neutral cash flow.
Discount needed
−$876,821
The gap between asking and the price a cash-flow buyer can underwrite.
If refi to 5.5% in 24 mo
+$14,705/yr
Illustrative cash-flow improvement at asking price if rates fall. Planning figure, not a forecast.
Annual avg $9,816 · peaks at $13,361 in Jul
Annual avg 62% · peaks at 81% in Jul
−$4,375/mo after all expenses
Cash to close
Down payment, closing costs, and furnishing
$485,895
Return on cash:6.4%
DSCR below 1.0 — but you can still qualify
Your DSCR is 0.48 · lenders typically require 1.0+.
Get matched with 2–3 vetted STR lenders, free.
What the deal returns over the hold — including the tax shield, which is the whole point for an appreciation buyer.
Levered IRR
9.0%
over 5-yr hold, with tax shield
Equity multiple
1.5×
total proceeds vs. $485,895 invested
Projected value at exit
$2,138,410
year 5 · 5.0% annual appreciation
Tax shield contribution
+5.9 pts
of IRR comes from year-1 depreciation
| Year | Equity | Appreciation | Cumulative cash flow | Total value |
|---|---|---|---|---|
| Year 1 | $431,640 | $83,775 | $100,622 | $616,037 |
| Year 2 | $445,328 | $171,739 | $49,887 | $666,953 |
| Year 3 | $460,005 | $264,101 | $945 | $725,050 |
| Year 4 | $475,743 | $361,081 | -$46,177 | $790,647 |
| Year 5 | $492,619 | $462,910 | -$91,451 | $864,078 |
Projection, not a promise.
Assumes 5.0% annual appreciation, 1.5% rent growth (operating costs held flat), and that the property qualifies for short-term-rental tax treatment. The year-1 depreciation shield depends on a real cost-segregation study and your tax situation — consult a CPA.
Appreciation is the dominant driver of this return. When cash flow is negative, the deal depends on the property gaining value — it is not paying for itself from income.
Appreciation, rent growth, and financing rates are editable under Edit financials.
STR deals turn on local rules and demand that a generalist agent misses. Chalet matches you with a vetted San Diego agent who knows which properties actually cash flow — and which to avoid.
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Real Estate Investment Analysis & Market Insights
Disclaimer
This page and the data presented are for informational purposes only. The information provided should not be construed as financial, legal, or investment advice. Market conditions can change rapidly, and past performance does not guarantee future results. Always consult with qualified professionals before making investment decisions.