374 E Costner St Unit 1-5

Farmersville, CA 93223

$625,000B

6 bd · 5.0 ba · 3,075 sqft · Built — · MultiFamily · Active · 116 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,695/mo
• Mortgage (P&I): −$3,278
• Tax + insurance: −$1,108
• HOA: −$0
• Vac / Maint / Mgmt: −$2,036
• Net cashflow: $3,273/mo
• Annual: $39,280/yr
• Cap rate: 12.71%
• Cash-on-cash: 22.90%
• DSCR: 2.02
• 1% rule: 1.55%
• Cash to close: $175,000

Investor read

• This is a 6-bed/5.0-bath multifamily listed at $625k. Condition is rated average.
• At list price, monthly cash flow is $3k ($39k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($10k rent vs $625k).
• It's been on market 116 days — a 9% lower offer ($569k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $569k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $19k of value loss. Plan a longer hold.
• Location reads 58/100 on livability (#723 in CA) — a working-class tenant base; expect higher turnover. Strengths: commute A+, housing A+; Watch: crime D+, cost of living D+, amenities F.
• Farmersville Unified (suburban): math 9% / reading 22% proficiency, ranked #492 of 517 in CA (top 95%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 81% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: J. E. Hester Elementary (385 students, 90% FRL); Freedom Elementary (math 11% / reading 21%, grade F, #452 of 498 statewide, top 91%, 572 students, 86% FRL); Farmersville High (math 2% / reading 32%, grade F, #1,010 of 1,170 statewide, top 88%, 723 students, 80% FRL) — zoned schools at 85% FRL track the district average.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 21 active listings in the ZIP; 1,447 units permitted in Tulare County in 2024 (307 in 5+ unit buildings).
• Tulare County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $175k cash investment doubles in ~6 years — after that, you're playing with house money.
• Climate carrying-cost: major flood risk; major wildfire risk; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 116 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D 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?
• 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.

Repairs flagged (vision-AI assessment)

• Moderate: Exterior siding — Weathered appearance
• Moderate: Roof — Aged appearance