256 Pettis Ave

Mountain View, CA 94041

$2,695,000D-

None bd · None ba · 2,801 sqft · Built 1961 · MultiFamily · Active · 80 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $18,059/mo
• Mortgage (P&I): −$14,133
• Tax + insurance: −$2,915
• HOA: −$0
• Vac / Maint / Mgmt: −$3,792
• Net cashflow: $-2,782/mo
• Annual: $-33,380/yr
• Cap rate: 5.05%
• Cash-on-cash: -4.42%
• DSCR: 0.80
• 1% rule: 0.67%
• Cash to close: $754,600

Investor read

• This is a multifamily listed at $2.69M.
• At list price, monthly cash flow is $-3k ($-33k/yr) — negative.
• To cash-flow at today's rent, offer at most $2.20M (18.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.81M (33.0% below list).
• It's been on market 80 days — a 6% lower offer ($2.53M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.81M (33.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.1%/yr); year-one equity from $19k of loan paydown is wiped out by about $28k of value loss. Plan a longer hold.
• 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: Stevenson Elementary (456 students, 8% FRL); Isaac Newton Graham Middle (881 students, 31% FRL); Los Altos High (math 74% / reading 83%, grade A-, #54 of 1,170 statewide, top 5%, 2,141 students, 13% FRL).
• Market conditions: Rents rising (+3.4%/yr); 23 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.
• Current owner paid $2.30M; 17% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 5.1% 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 $18,059/mo this rent would consume 121% of the median local household income ($179k/yr) (locally 981% 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 80 days. Have you received any prior offers? Is the seller open to a 33% concession, seller financing, or rate buy-down credit?
• Built in 1961 — 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?
• 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?