265 Brown Gables #10

Brookdale, CA 95005

$207,000C

2 bd · 1.0 ba · 500 sqft · Built 1959 · Manufactured · Active · 78 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,265/mo
• Mortgage (P&I): −$1,086
• Tax + insurance: −$411
• HOA: −$0
• Vac / Maint / Mgmt: −$476
• Net cashflow: $292/mo
• Annual: $3,506/yr
• Cap rate: 8.37%
• Cash-on-cash: 7.42%
• DSCR: 1.33
• 1% rule: 1.09%
• Cash to close: $57,960

Investor read

• This is a 2-bed/1.0-bath manufactured listed at $207k. Condition is rated good.
• At list price, monthly cash flow is $292 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $207k).
• It's been on market 78 days — a 6% lower offer ($195k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $195k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#472 in CA) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, commute A; Watch: housing D, health & safety D, amenities F.
• San Lorenzo Valley Unified (rural): math 47% / reading 62% proficiency, ranked #303 of 1,400 in CA (top 22%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 18% free/reduced lunch — higher-income household profile.
• Zoned schools: Boulder Creek Elementary (460 students, 33% FRL); San Lorenzo Valley Middle (381 students, 28% FRL); San Lorenzo Valley High (math 42% / reading 67%, grade C-, #256 of 1,170 statewide, top 24%, 643 students, 22% FRL).
• Watch-outs: flood insurance adds $66/mo; built in 1959 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 25 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 224 units permitted in Santa Cruz County in 2024 (25 in 5+ unit buildings).
• Santa Cruz County population projected at +18% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 2y ago 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.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 78 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1959 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.