1181 Q St

Arcata, CA 95521

$999,000C-

None bd · None ba · 4,289 sqft · Built 1952 · MultiFamily · Active · 62 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,260/mo
• Mortgage (P&I): −$5,239
• Tax + insurance: −$1,665
• HOA: −$0
• Vac / Maint / Mgmt: −$2,155
• Net cashflow: $1,202/mo
• Annual: $14,418/yr
• Cap rate: 7.74%
• Cash-on-cash: 5.15%
• DSCR: 1.23
• 1% rule: 1.03%
• Cash to close: $279,720

Investor read

• This is a multifamily listed at $999k. Condition is rated fair.
• At list price, monthly cash flow is $1k ($14k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($10k rent vs $999k).
• It's been on market 62 days — a 6% lower offer ($939k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $939k (6.0% below list) — sets the bar for market timing.
• 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.
• Location reads 68/100 on livability (#275 in CA) — a middle-class / working-renter tenant base. Strengths: amenities A+, health & safety A+; Watch: housing C-, crime D-, commute F.
• Northern Humboldt Union High (town): math 32% / reading 65% proficiency, ranked #529 of 1,400 in CA (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 10% free/reduced lunch — higher-income household profile.
• Zoned schools: Arcata High (math 47% / reading 72%, grade C+, #205 of 1,170 statewide, top 19%, 1,052 students, 39% FRL) — zoned schools average 39% FRL vs 10% district-wide (29 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1952 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+8.1%/yr); 82 active listings in the ZIP; 188 units permitted in Humboldt County in 2024 (17 in 5+ unit buildings).
• Humboldt County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 5y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $455k; list at $999k implies a 120% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $280k cash investment doubles in ~9 years — after that, you're playing with house money.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.7% vs local median 1.9% in Arcata — 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

• It's been on market 62 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1952 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.

Repairs flagged (vision-AI assessment)

• Major: siding — Severe weathering
• Major: roof — Significant wear
• Major: landscaping — Overgrown vegetation