870 Williams Way

Mountain View, CA 94040

$3,999,000D

13 bd · 10.5 ba · 6,876 sqft · Built 1964 · MultiFamily · Active · 44 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $27,608/mo
• Mortgage (P&I): −$20,971
• Tax + insurance: −$6,665
• HOA: −$0
• Vac / Maint / Mgmt: −$5,798
• Net cashflow: $-5,826/mo
• Annual: $-69,910/yr
• Cap rate: 4.54%
• Cash-on-cash: -6.24%
• DSCR: 0.72
• 1% rule: 0.69%
• Cash to close: $1,119,720

Investor read

• This is a 13-bed/10.5-bath multifamily listed at $4.00M.
• At list price, monthly cash flow is $-6k ($-70k/yr) — negative.
• To cash-flow at today's rent, offer at most $3.16M (21.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $2.76M (31.0% below list).
• It's been on market 44 days — a 3% lower offer ($3.88M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.76M (31.0% below list) — sets the bar for 1% rule.
• In year one you build about $34k of equity ($28k loan paydown + $6k appreciation (0.1% local appreciation)).
• Location reads 84/100 on livability (#14 in CA, #671 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: crime D+, cost of living F.
• Mountain View-Los Altos Union High (urban): math 77% / reading 86% proficiency, ranked #11 of 517 in CA (top 2%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Mountain View High (math 83% / reading 89%, grade A, #25 of 1,170 statewide, top 2%, 2,220 students, 13% FRL).
• Market conditions: Rents rising fast (+6.2%/yr); 59 active listings in the ZIP; high-income renter base; 3,838 units permitted in Santa Clara County in 2024 (1,886 in 5+ unit buildings).
• Santa Clara County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 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.
• By year 6, paydown + projected appreciation supports a ~$229k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.5% vs local median 1.4% in Mountain View — 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.
• At $27,608/mo this rent would consume 176% of the median local household income ($188k/yr) (locally 1963% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 44 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• Built in 1964 — 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 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?
• 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?
• 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.