713 Sally St

Hollister, CA 95023

$735,000C-

7 bd · 4.0 ba · 2,784 sqft · Built 1950 · MultiFamily · Active · 88 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,808/mo
• Mortgage (P&I): −$3,854
• Tax + insurance: −$1,229
• HOA: −$0
• Vac / Maint / Mgmt: −$1,640
• Net cashflow: $1,085/mo
• Annual: $13,022/yr
• Cap rate: 8.06%
• Cash-on-cash: 6.33%
• DSCR: 1.28
• 1% rule: 1.06%
• Cash to close: $205,800

Investor read

• This is a 3 × 2-bed/1.2-bath units multifamily listed at $735k.
• At list price, monthly cash flow is $1k ($13k/yr) — positive. Per door: $362/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $735k).
• It's been on market 88 days — a 6% lower offer ($691k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $691k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#288 in CA) — a middle-class / working-renter tenant base. Strengths: amenities A+, health & safety A+, employment A-; Watch: commute F, cost of living F.
• San Benito High (town): math 29% / reading 55% proficiency, ranked #593 of 1,400 in CA (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.4%/yr); 277 active listings in the ZIP; 1 comparable units currently listed for rent nearby; high-income renter base; 281 units permitted in San Benito County in 2024 (0 in 5+ unit buildings).
• San Benito County population projected at +18% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts; this cycle's ask has dropped $50k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $350k; list at $735k implies a 110% gain — meaningful room to come down on a strong offer.
• Cap rate 8.1% vs local median 3.0% in Hollister — 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 $7,808/mo this rent would consume 81% of the median local household income ($116k/yr) (locally 1352% 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 88 days. Have you received any prior offers? Is the seller open to a 6% 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 1950 — 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.
• 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.