3635 Country Clb

Clearlake, CA 95422

$297,000F

3 bd · 1.5 ba · 1,440 sqft · Built 1962 · SingleFamily · Active · 84 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,982/mo
• Mortgage (P&I): −$1,558
• Tax + insurance: −$238
• HOA: −$0
• Vac / Maint / Mgmt: −$416
• Net cashflow: $-229/mo
• Annual: $-2,752/yr
• Cap rate: 5.37%
• Cash-on-cash: -3.31%
• DSCR: 0.85
• 1% rule: 0.67%
• Cash to close: $83,160

Investor read

• This is a 3-bed/1.5-bath single-family listed at $297k.
• At list price, monthly cash flow is $-229 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $256k (13.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $198k (33.3% below list).
• It's been on market 84 days — a 6% lower offer ($279k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $198k (33.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 61/100 on livability (#549 in CA) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+; Watch: crime F, amenities F, commute F.
• Konocti Unified (town): math 9% / reading 21% proficiency, ranked #494 of 517 in CA (top 96%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 77% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Pomo (math 5% / reading 12%, grade F, #1,547 of 1,571 statewide, top 98%, 708 students, 88% FRL); Highlands Academy (reading 24%, 12 students, 92% FRL); Lower Lake High (math 4% / reading 28%, grade F, #1,034 of 1,170 statewide, top 88%, 1,057 students, 79% FRL).
• Market conditions: 292 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 107 units permitted in Lake County in 2024 (40 in 5+ unit buildings).
• Lake County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts 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 $115k; list at $297k implies a 158% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: severe wildfire risk; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.4% vs local median 3.8% in Clearlake — 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?
• It's been on market 84 days. Have you received any prior offers? Is the seller open to a 33% concession, seller financing, or rate buy-down credit?
• Built in 1962 — 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 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 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?
• 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?