13720 Saint Andrews Dr #1-44A, Seal Beach, CA 90740 — 8.9% Cash-on-Cash

About this property

This 2-bedroom, 2-bathroom condo in Leisureworld Seal Beach spans 1,150 square feet and sits inside a gated 55-plus active-adult community roughly 1.5 miles from the Seal Beach pier.

The unit has been freshly painted and comes with an updated kitchen featuring Corian countertops, natural oak cabinetry, and a built-in island with storage — details that tend to hold tenant interest without requiring near-term capital outlay. The expanded primary bedroom opens through French doors onto a brick-floor patio overlooking a greenbelt, and in-unit washer/dryer hookups are already plumbed, which meaningfully widens the renter pool in a senior community where laundry convenience ranks high.

The listing has been on the market 19 days and came down $15,000 from its original ask — a modest but real concession that pushed the price-per-square-foot to roughly $370. The lot footprint is 1,200 square feet. HOA fees run $519/month and cover the community's extensive amenity infrastructure: six clubhouses, a gym, pool, pickleball, and an on-site pharmacy and health center, among others. That fee is the single largest line item in the monthly cost stack and deserves close scrutiny before closing.

Tax-assessed value is not available in public records for this unit, so buyers should pull the current county assessment independently to confirm future tax trajectory after a purchase-price reset.

The investment case

An 8.9% cash-on-cash return at a $425,000 purchase price is the headline number here — and it holds up under the math.

List Price

$425,000

Monthly Payment (PITI+HOA)

$2,866

Principal & Interest

$2,205

Property Tax

$0

Insurance

$142

HOA

$519

PMI

$0

Est. Monthly Rent

$3,496

Estimated rent based on automated valuation of comparable listings.

Cash-on-Cash Return

8.9%

Cap Rate

8.0%

Monthly Cash Flow

$630

Gross Rent Multiplier

10.1

DSCR

1.3

At 20% down ($85,000), the all-in monthly payment comes to $2,866: $2,205 in principal and interest at the current 6.55% 30-year fixed rate, $142 in insurance, and $519 in HOA fees. Estimated monthly rent lands at $3,496, producing $630 in monthly cash flow and a net operating income of $2,835/month. The debt service coverage ratio of 1.3 means rent covers the mortgage with 30% headroom — a cushion most lenders consider the minimum for investment underwriting.

The cap rate of 8.0% and gross rent multiplier of 10.1 reinforce that this isn't priced like a trophy asset where you're buying appreciation and hoping cash flow follows. At a GRM of 10.1, the property pays for itself in roughly a decade of gross rents — well inside the range where income-focused buyers typically get comfortable.

For context, the city average cash-on-cash return in Seal Beach is 0.0%, meaning the overwhelming majority of listings here generate negative or break-even cash flow at 20% down. This unit sits well above that baseline. The $15,000 price reduction from the original ask also suggests the seller has already absorbed some negotiating pressure, which is worth noting if a buyer wants to push further.

Figures exclude depreciation tax benefits, which vary by individual tax situation.

Annual return outlook

The 5-year total ROI of 17.6% draws from three distinct sources, none of which is doing all the work alone.

Cash flow contributes 8.9% of the 17.6% total — the largest single component, which is unusual for coastal California where appreciation typically dominates the return stack. Mortgage paydown adds another 4.9%, reflecting the accelerated equity build at current amortization rates. Appreciation accounts for the remaining 3.8%, projected on an estimated basis given coastal Orange County's historical price trajectory; that figure should be treated as a directional input, not a guarantee.

The balance here matters. When cash flow is the dominant return driver, the investment is less sensitive to short-term price softness. A buyer who holds through a flat or mildly declining market still collects $630/month while the mortgage balance shrinks. Contrast that with a pure-appreciation play — common in this zip code — where a flat market erases the entire thesis.

The 55-plus community structure also has an indirect effect on the appreciation component. Demand for age-restricted housing in coastal Southern California has been structurally supported by demographic tailwinds, though that dynamic is an estimated overlay, not a data point in the underwriting.

With cash flow carrying the heaviest load in the return stack, this property's 5-year outlook is more resilient to price volatility than a typical Seal Beach listing.

How it compares to nearby for-sale listings

Five active 2-bedroom listings in the 90740 zip code provide a pricing frame, with a median asking price of $389,000.

At $425,000, this unit prices $36,000 above the comp median — but the comparison requires a size adjustment. Three of the five comps are 750-square-foot units asking between $319,000 and $389,000, implying a price-per-square-foot range of roughly $425 to $519. At $370 per square foot, this 1,150-square-foot unit is actually priced at a discount to those smaller units on a per-square-foot basis.

The two comps that more closely match on square footage — both 1,100-square-foot 2/2 units — are listed at $599,000 and $679,990. Against that subset, this property at $425,000 looks meaningfully cheaper, even accounting for differences in finishes or specific community amenities.

Days on market across the comp set range from 3 to 9 days, all shorter than this listing's 19 days. That gap could reflect pricing friction, the age-restriction limiting the buyer pool, or simply normal variance in a low-volume zip. The $15,000 price reduction already taken suggests the seller has acknowledged some of that friction. A buyer with patience has a reasonable negotiating position, though the cash-flow math already works at the current ask.

Rental demand in this zip

There are no active rental comps in ZIP 90740 with 2 bedrooms to anchor the rent estimate directly, which introduces meaningful uncertainty into the cash-flow projection.

Estimated monthly rent of $3,496 is the figure driving the $630 cash flow and 8.9% cash-on-cash return. Without comparable rentals in the immediate zip code to validate that number, investors should treat it as a starting point rather than a confirmed market rate.

A few structural factors are worth weighing. The 55-plus community restriction narrows the renter pool to qualifying tenants — typically adults 55 and older — which limits the universe of prospective renters but may also reduce turnover once a stable tenant is placed. Senior renters in amenity-rich communities often stay longer than the general rental population, which has a real effect on vacancy-adjusted returns over time.

The unit's in-unit washer/dryer hookups, patio access, and updated kitchen are features that command a premium in the senior rental segment. Whether the market in this specific community supports $3,496/month is a question a local property manager familiar with Leisureworld Seal Beach could answer with more precision than any broad estimate. Before closing, prospective buyers should contact the HOA to confirm rental restrictions, if any, and get a realistic read on current lease rates for comparable units within the community.

The rent estimate is plausible given the unit's size and finishes, but zero local comps means the cash-flow case rests on an assumption that needs on-the-ground verification.

Who this property suits + risks to weigh

This property fits an income-focused investor comfortable with the 55-plus tenant profile and willing to do the legwork on rent validation before closing.

Best fit

The 8.9% cash-on-cash return and positive $630/month cash flow make this a genuine income play in a city where most listings don't produce positive cash flow at all. An investor who wants coastal California exposure without betting entirely on appreciation — and who has the $85,000 down payment — gets a DSCR of 1.3 and a cap rate of 8.0% that would be competitive in most markets, let alone Orange County.

The 55-plus restriction is a feature for some buyers: the community self-selects for stable, long-term tenants who value the amenities and are less likely to churn annually. For a remote or hands-off landlord, that profile can reduce management friction meaningfully.

Risks to weigh

The $519/month HOA fee is the most significant risk variable. HOA fees in age-restricted communities can increase as the infrastructure ages and reserves are drawn down. A special assessment — for roof work, pool resurfacing, or deferred maintenance — could materially alter the cash-flow picture. Reviewing the HOA's reserve study and meeting minutes before closing is not optional here.

The rent estimate lacks local comp support, which means the $630/month cash flow figure could be optimistic or conservative — there's no market data to triangulate. The 55-plus restriction also limits exit options: resale buyers must qualify under community rules, which constrains the eventual buyer pool and could slow a future sale.

Finally, the property tax assessed value shows as zero in public records, which is likely a data gap rather than a literal zero. Buyers should confirm the post-purchase assessed value with the county to avoid surprises on the tax line.