17704 Regency Cir, Bellflower, CA 90706 — -0.1% Cash-on-Cash

About this property

17704 Regency Cir is a 3-bedroom, 2-bath condo in a gated Bellflower community, listed at $480,000 with 1,189 square feet of living space.

The property sits within a gated complex called The Oaks, which includes a pool, spa, and clubhouse — amenities that carry real weight for tenant retention in the rental market. Public records show a tax-assessed value of $189,138, a significant gap below the asking price that reflects California's Prop 13 assessment structure rather than any distress signal.

The listing has been on the market four days, which tells you nothing yet about pricing pressure. What's notable is the non-owner-occupied status confirmed in public records — this property has functioned as an investment unit, meaning a buyer isn't displacing an owner-occupant or navigating an emotional sale dynamic. The lot spans 2.34 acres at the complex level, and the 1,189-square-foot floor plan is on the compact side for a 3-bedroom, which typically translates to lower per-unit maintenance costs. No price reductions have occurred since listing, and there's no pre-foreclosure or auction flag.

The investment case

The headline on this deal is a -0.1% cash-on-cash return — essentially breakeven at current financing — against a 7.4% cap rate that signals the underlying asset earns well before debt service.

List Price

$480,000

Monthly Payment (PITI+HOA)

$3,465

Principal & Interest

$2,427

Property Tax

$553

Insurance

$160

HOA

$325

PMI

$0

Est. Monthly Rent

$3,457

Estimated rent based on automated valuation of comparable listings.

Cash-on-Cash Return

-0.1%

Cap Rate

7.4%

Monthly Cash Flow

-$8

Gross Rent Multiplier

11.6

DSCR

1.2

At a 20% down payment on a $480,000 purchase, the monthly payment stack lands at $3,465: $2,427 in principal and interest at 6.55%, $553 in property tax, $160 in insurance, and $325 in HOA fees. Estimated monthly rent comes in at $3,457, producing a cash flow of negative $8 per month. That's not a typo — this deal is almost exactly breakeven on a monthly basis.

The -0.1% cash-on-cash return actually sits in line with the city average of 0.0%, which means this property isn't underperforming Bellflower's investment landscape; it's representative of it. The more useful number here is the 7.4% cap rate. Cap rate strips out financing and measures the property's income productivity on its own — a 7.4% figure at this price point is legitimate. Net operating income works out to $2,972 per month, and the debt service coverage ratio of 1.2 means the property generates 20% more income than it needs to cover the mortgage, which matters if you're financing through a DSCR lender.

The gross rent multiplier of 11.6 is reasonable for a Southern California condo — it means the property pays for itself in gross rent terms in under 12 years. Figures exclude depreciation tax benefits, which vary by individual tax situation.

The investment case here isn't monthly cash flow — it's a near-neutral carry position with a productive underlying asset.

Annual return outlook

The 5-year total ROI of 7.8% breaks down across three components, with cash flow contributing almost nothing and the real work done by appreciation and mortgage paydown.

Mortgage paydown contributes 4.1% of the 7.8% total — the largest single component. At a 6.55% rate on a $384,000 loan, early amortization is slow, but over five years the principal reduction compounds into a meaningful equity position. This is the return component investors in this price tier often undercount.

Appreciation adds an estimated 3.8% annually to the projection. That figure is an estimate, not a market-data-sourced certainty, and it should be treated accordingly. Southern California coastal-adjacent markets have historically supported appreciation, but projections at any specific rate carry real variance. If appreciation comes in at 2% instead of 3.8%, the total ROI picture weakens considerably.

Cash flow's contribution to the 5-year total is effectively zero at -0.1%. That's not a drag on the deal, but it means the investor is entirely dependent on the other two levers. Any rent softness, vacancy, or unexpected HOA special assessment would push cash flow negative in a more meaningful way and eat into the paydown contribution in real terms.

The honest read: this is a leverage-and-hold thesis. Buy, carry at near-zero cost, let amortization and appreciation build equity, then evaluate exit or refi when rates shift.

How it compares to nearby for-sale listings

Five active for-sale listings in the area provide pricing context, with a median comp price of $794,999 — well above this property's $480,000 ask.

At $480,000 for 1,189 square feet, this property prices at roughly $404 per square foot. The comp set skews toward single-family homes: a 1,218-square-foot property on Greenbrier lists at $825,000 ($677/sqft), and a 1,464-square-foot home on Syble Ave asks $858,000 ($586/sqft). Even the smallest comp — 964 square feet on Walnut St E at $535,000 — comes in at $555/sqft.

The $404/sqft on this condo reflects the structural discount that attached units carry versus detached homes in the same zip, plus the HOA overhead that a buyer prices in. That discount is real and rational, not a distress signal. For an investor, the lower entry price also means lower capital at risk and a faster path to positive equity via paydown.

Days on market across the comp set range from zero to 12, suggesting the local market is moving. This property's four-day DOM puts it in the active range. No comp has seen a price reduction yet, which points to sellers holding firm on pricing — relevant context for any negotiation strategy on this unit.

Rental demand in this zip

There are no directly comparable closed rentals in ZIP 90706 for 3-bedroom units to validate the rent estimate, which introduces meaningful uncertainty into the cash flow projection.

Estimated monthly rent for this property is $3,457. With zero rental comps available in the immediate ZIP for 3-bedroom units, that figure can't be cross-checked against actual market transactions. It's a modeled estimate, not a market-cleared number.

That absence of comp data is itself a signal worth taking seriously. It could mean 3-bedroom rentals in this ZIP turn over infrequently — which would be a positive indicator of tenant stability — or it could mean the rental pool is thin and vacancy risk is higher than the numbers suggest. An investor underwriting this deal should pull active rental listings in adjacent ZIPs and verify achievable rents independently before closing.

What the numbers do show: at $3,457 estimated rent against $3,465 in total monthly costs, the margin for error is essentially zero. A $100/month shortfall in achieved rent flips the already-thin cash flow to negative $108/month. A vacancy month costs the investor the full $3,465 payment with no offset. The DSCR of 1.2 provides some lender comfort, but the investor's personal cash flow cushion is far narrower than that ratio implies.

Who this property suits + risks to weigh

This property fits a patient equity-builder more than a cash-flow investor — someone who can carry a breakeven asset for several years while appreciation and amortization do the work.

Best fit

The ideal buyer here is an investor with strong liquidity reserves who isn't counting on monthly cash flow distributions. The near-zero carry means the property won't drain capital in normal conditions, but it also won't fund anything. Buyers who've maxed out their primary residence equity and want Southern California exposure without a seven-figure entry point will find the $480,000 price and $96,000 down payment more accessible than the detached-home comp set. The gated community with pool and spa amenities supports tenant quality and retention, which matters when your margin is this thin. The non-owner-occupied history suggests the unit has already functioned as a rental, reducing the operational unknowns.

Risks to weigh

The $325/month HOA fee is the most underappreciated risk line here. HOA fees in California condo complexes can increase, and special assessments for deferred maintenance — roofing, plumbing, pool resurfacing — can arrive without warning. A $5,000 special assessment in year two would wipe out several years of paper cash flow. Investors should request the HOA's reserve study and financials before committing. Beyond HOA risk, the rent estimate rests on zero local comp transactions, which means the $3,457 figure is unvalidated. Any rent shortfall hits an already-zero-margin deal immediately. Finally, the 3.8% annual appreciation assumption is an estimate — if the Southern California market softens or rates stay elevated, the equity-build thesis weakens and the hold period extends.