3 Lerner Dr

Calistoga, CA 04515

$1,790,999D-

4 bd · 5.5 ba · 4,069 sqft · Built 1991 · SingleFamily · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,961/mo
• Mortgage (P&I): −$9,392
• Tax + insurance: −$2,985
• HOA: −$0
• Vac / Maint / Mgmt: −$2,092
• Net cashflow: $-4,508/mo
• Annual: $-54,099/yr
• Cap rate: 3.27%
• Cash-on-cash: -10.79%
• DSCR: 0.52
• 1% rule: 0.56%
• Cash to close: $501,480

Investor read

• This is a 4-bed/5.5-bath single-family listed at $1.79M. Condition is rated good.
• At list price, monthly cash flow is $-5k ($-54k/yr) — negative.
• To cash-flow at today's rent, offer at most $1.14M (36.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $996k (44.4% below list).
• It's been on market 20 days — a 2% lower offer ($1.76M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $996k (44.4% below list) — sets the bar for 1% rule.
• In year one you build about $66k of equity ($12k loan paydown + $54k appreciation (3.0% local appreciation)).
• Location reads 63/100 on livability (#448 in CA) — a middle-class / working-renter tenant base. Strengths: health & safety A+, employment A-; Watch: amenities F, commute F, cost of living F.
• Calistoga Joint Unified (town): math 33% / reading 51% proficiency, ranked #624 of 1,400 in CA (top 45%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Calistoga Elementary (412 students, 82% FRL); Calistoga Junior/Senior High (380 students, 80% FRL) — zoned schools average 81% FRL vs 58% district-wide (23 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 1 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals leasing fast (median 6d on market — plan ~1-2 weeks tenant-placement turnaround); 427 units permitted in Napa County in 2024 (189 in 5+ unit buildings).
• Napa County population projected at +14% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• By year 2, paydown + projected appreciation supports a ~$108k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.3% vs local median 2.4% in Calistoga — 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

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.