1200 W Market Cir

Boronda, CA 93901

$1,995,000B-

66 bd · 110.0 ba · 5,853 sqft · Built 1914 · MultiFamily · Active · 42 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $32,903/mo
• Mortgage (P&I): −$10,462
• Tax + insurance: −$2,872
• HOA: −$0
• Vac / Maint / Mgmt: −$6,910
• Net cashflow: $12,659/mo
• Annual: $151,907/yr
• Cap rate: 13.91%
• Cash-on-cash: 27.19%
• DSCR: 2.21
• 1% rule: 1.65%
• Cash to close: $558,600

Investor read

• This is a 11 × 6-bed/10.0-bath units multifamily listed at $2.00M.
• At list price, monthly cash flow is $13k ($152k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($33k rent vs $2.00M).
• It's been on market 42 days — a 3% lower offer ($1.94M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.94M (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $14k of loan paydown is wiped out by about $60k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#617 in CA) — a working-class tenant base; expect higher turnover. Strengths: commute A-, crime B+; Watch: amenities D, schools D-, employment F.
• Salinas Union High (urban): math 23% / reading 39% proficiency, ranked #998 of 1,400 in CA (top 71%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 66% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1914 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents flat; 32 active listings in the ZIP; solid renter incomes; 530 units permitted in Monterey County in 2024 (50 in 5+ unit buildings).
• Monterey County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 9 sale attempts since 27y ago; this cycle's ask has dropped $305k (13%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 0.3% rent growth), your $559k cash investment doubles in ~5 years — after that, you're playing with house money.
• At $32,903/mo this rent would consume 433% of the median local household income ($91k/yr) (locally 1381% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 42 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1914 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.