502 E William St · San Jose, CA 95112

$999,000

None bd · None ba · 2,785 sqft · MultiFamily public records · 13 Days on market

Built 1992 6,347 sqft lot $359/sqft · 23% below area Est $1300k · 23% under

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Why this score? — see what drove the D grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• ARV discount +15.0/15.0
• Cash flow +7.2/30.0
• Schools +4.2/10.0
• Livability +3.9/5.0
• Rent growth +3.6/5.0
• Condition / age +2.5/5.0
• 1% rule +2.4/10.0
• DSCR +1.4/10.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 2 units. confirmed

Listing remarks

This duplex built in 1992 features 2,785 sf with strong investment potential, ready for your finishing touches. The upstairs unit features 3 bedrooms and 2 baths, plus a kitchen and office space. The first level features 3 bedrooms, 2 baths, kitchen and family area. 2 car garage with side parking for additional vehicles. The garage features a roof top patio. This fixer-upper offers an excellent opportunity for a buyer with vision to transform the property and unlock significant value through thoughtful upgrades and improvements. With the right updates, it has the potential to generate increased rental income and long-term appreciation. Some key updates have already been completed, including

Key facts

• New furnace
• Roof top patio
• New water heater

Tags

• ROOF TOP PATIO
• NEW ROOF
• NEW WATER HEATER
• NEW FURNACE
• NEW OVEN
• KITCHEN FLOORING

What this means for you Summary

Snapshot

• This is a 2 × 3-bed/2-bath units multifamily listed at $999k.

Deal economics

• At list price, monthly cash flow is $-1k ($-17k/yr) — negative. Per door: $-691/mo.
• To cash-flow at today's rent, offer at most $755k (24.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $735k (26.4% below list).
• Recommended offer: $735k (26.4% below list) — sets the bar for 1% rule.
• Cap rate 4.6% vs local median 1.6% in San Jose — 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.

Location & tenants

• Location reads 78/100 on livability (#68 in CA, #2,559 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• San Jose Unified (urban): math 39% / reading 52% proficiency, ranked #149 of 517 in CA (top 29%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising fast (+4.2%/yr); 104 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 3,838 units permitted in Santa Clara County in 2024 (1,886 in 5+ unit buildings).
• At $7,354/mo this rent would consume 99% of the median local household income ($89k/yr) (locally 4364% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $30k of value loss. Plan a longer hold.
• Santa Clara County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• Only 13 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Climate carrying-cost: extreme-heat days projected 7→14/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $735,400 (26.4% below list)

Questions for the listing agent

1. 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?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
6. 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?
7. 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.
8. 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.
9. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 0.74% ✗
• Cap rate: 4.63%
• Cash-on-cash: -5.93%
• DSCR: 0.74
• GRM: 11.3

CMA / ARV

• ARV (median comp): $1,300,045
• List price: $999,000
• Delta: -23.16%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 8 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
357 S 16th St	0.31mi	6/4.5	2,840 (+2%)	2mo	$1,820,000	$641	81
162 E San Salvador St	0.49mi	3/6.5	2,760 (-1%)	9mo	$1,325,000	$480	68
630 S 8th St	0.25mi	2/6.0	2,880 (+3%)	18mo	$1,618,000	$562	67
987 E William	0.64mi	5/4.0	2,734 (-2%)	7mo	$1,240,000	$454	61
737 Forestdale Ave	0.52mi	8/4.0	2,728 (-2%)	14mo	$1,455,000	$533	61
92 S 5th St	0.64mi	4/7.0	2,780 (-0%)	12mo	$1,445,000	$520	60
811 Jeanne Ave	0.55mi	8/4.0	2,993 (+8%)	12mo	$1,515,000	$506	52
712 S 2nd St	0.66mi	7/3.0	2,470 (-11%)	7mo	$1,150,000	$466	45

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 4.25% rent growth · sell at horizon

5-year hold

• IRR: -25.0%
• Equity multiple: 0.14×
• Total profit: $-240,219
• Equity at exit: $148,954

10-year hold

• IRR: -17.4%
• Equity multiple: -0.01×
• Total profit: $-281,895
• Equity at exit: $86,375

Cash invested: $279,720 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (CITY): 0 Strongly Tenant-Friendly
• State California: 18 Strongly Tenant-Friendly · D+13
• County: — inherits STATE
• City San Jose: 0 Strongly Tenant-Friendly · D+24

Apartment Rent Ordinance covers pre-1979 multifamily.

Methodology + full state rankings →

ZIP-level market 95112

• Rents YoY: 4.2%
• Active inventory: 104
• Price-to-rent: 22.6×

Monthly cashflow live

• Estimated rent: $7,354 high
• Mortgage (P&I): −$5,239
• Tax from tax record: −$1,536 /mo · $18,433/yr
• Insurance: −$416
• HOA: −$0
• Vacancy / Maint / Mgmt: −$1,544
• Net cashflow: $-1,382

Break-even live

Break-even rent $9,103

Max offer price $754,948

Occupancy floor —

Sensitivity live

Price	-10% $-816	-5% $-1,099	+0% $-1,382	+5% $-1,664	+10% $-1,947
Rent	-10% $-1,962	-5% $-1,672	+0% $-1,382	+5% $-1,091	+10% $-801
Rate	-1.0pp $-878	-0.5pp $-1,127	base $-1,382	+0.5pp $-1,640	+1.0pp $-1,904

2-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 2× units	3	2	$7,354
Total (2 units)			$7,354

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $249,750
• Closing costs: $29,970
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
721 Locust St Unit A San Jose, CA	3.0	2.0	2100	$3,688	$1.76	44d	1	1.11mi
544 N 16th St San Jose, CA	3.0	2.0	1926	$3,895	$2.02	44d	1	1.39mi

Tax reassessment forecast CA · Resets to sale price

• Current annual tax: $18,433 · $1,536/mo
• Projected year-2 tax: $18,433 · $1,536/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 4/10 Moderate FEMA zone D · 22% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 5/10 Major 7 d/yr ≥93°F today · 14 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 9/10 Extreme 17 unhealthy d/yr today · 17 by 30 yrs out

Taxation est. · year 1

• Rental income: $88,248
• − Mortgage interest: −$55,960
• − Property taxes: −$18,433
• − Insurance: −$4,995
• − Repairs & maintenance: −$7,060
• − Management: −$7,060
• − Depreciation: −$29,062
• Taxable loss: −$34,321
• Est. tax savings @ 24.0%: +$8,237
• After-tax cash flow: $-8,341/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: San Jose Unified
• NCES district ID: 0634590
• Math proficiency: 39% ▼ -4.00%
• Reading proficiency: 52% ▼ -3.00%
• Median HH income: $84,567
• Composite: 42.31/100
• National rank: #3259
• State rank: #149 of 517 in CA

Livability — San Jose

• Score: 78/100
• State rank: #68
• US rank: #2559

Category grades

Amenities A+ Commute A+ Cost of living F Crime F Employment A+ Housing B- Health & safety A+ User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: San Jose, CA
• County: Santa Clara County · 1,806,974 people
• City population: 954,479
• Metro: San Jose-Sunnyvale-Santa Clara, CA
• Population (ZIP): 57,373
• Household income: $89,103
• Rent vs Own: 73.6% rent · 26.4% own
• Severe rent burden: 4364.0

Population outlook (Santa Clara County) Hauer SSP2

• Today (2025): 2,179,074 people
• By 2030: 2,301,297 · +5.6%
• By 2040: 2,528,195 · +16.0%
• By 2050: 2,712,135 · +24.5%
• By 2075: 2,998,701 · +37.6%
• By 2100: 2,931,429 · +34.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Highly diverse neighborhood (Simpson 0.71)
• Race & ethnicity: Hispanic / Latino 41% Asian 27% White 22% Two or more races 18% Black 5% Native American 2%
• Hispanic origin (detail): Mexican 33%
• Common ancestry: Slovak 1% Lithuanian 1% Scotch-Irish 1%
• Foreign-born: 34% · Canada, Vietnam, China
• Languages at home: 48% English-only · Spanish 29% Vietnamese 9% Chinese 6%

Political lean MEDSL · Santa Clara

• 2024 margin: Solid D (+40.0) · D 68.1% · R 28.1% · Other 3.8%
• 2008→2024 swing: -0.9pp no change · 2008: 40.9pp · 2024: 40.0pp
• All cycles: 2024: D+40.0 2020: D+47.4 2016: D+52.5 2012: D+42.1 2008: D+40.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -1025.61%
• Current HPI: 297.1788
• Rent YoY: ▲ 4.25%
• Metro: San Jose-Sunnyvale-Santa Clara, CA
• State GDP YoY: ▲ 3.21%
• F500 in state: 116

Industry mix (Fortune 500 HQ in CA)

Industry	F500 HQs	Revenue
▸Technology	27	$1,492B
▸Financial Services	3	$174B
▸Retail	3	$44B
▸Insurance	3	$26B
▸Media / Entertainment	2	$115B
▸Pharmaceuticals / Biotech	2	$62B

Property tax history

+9.4%/yr

Latest (2025): $18,433 · +172.2% YoY. Source: county tax records.