1405 E Cypress

Reedley, CA 93654

$664,900D

8 bd · 4.0 ba · 3,144 sqft · Built 1997 · MultiFamily · Active · 50 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,661/mo
• Mortgage (P&I): −$3,487
• Tax + insurance: −$1,108
• HOA: −$0
• Vac / Maint / Mgmt: −$1,399
• Net cashflow: $667/mo
• Annual: $8,007/yr
• Cap rate: 7.50%
• Cash-on-cash: 4.30%
• DSCR: 1.19
• 1% rule: 1.00%
• Cash to close: $186,172

Investor read

• This is a 4 × 2-bed/1.0-bath units multifamily listed at $665k. Condition is rated fair.
• At list price, monthly cash flow is $667 ($8k/yr) — positive. Per door: $167/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($7k rent vs $665k).
• It's been on market 50 days — a 3% lower offer ($645k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $645k (3.0% 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 $20k of value loss. Plan a longer hold.
• Location reads 62/100 on livability (#486 in CA) — a middle-class / working-renter tenant base. Strengths: housing A; Watch: commute D+, crime D, health & safety D.
• Kings Canyon Joint Unified (town): math 26% / reading 43% proficiency, ranked #288 of 517 in CA (top 56%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 73% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Great Western Elementary (math 27% / reading 37%, grade F, #779 of 1,571 statewide, top 52%, 323 students, 86% FRL); Navelencia Middle (math 23% / reading 41%, grade F, #207 of 498 statewide, top 42%, 327 students, 90% FRL); Reedley High (math 31% / reading 69%, grade D+, #331 of 1,170 statewide, top 28%, 1,848 students, 82% FRL).
• Market conditions: 51 active listings in the ZIP; 2,426 units permitted in Fresno County in 2024 (296 in 5+ unit buildings).
• Fresno County population projected at +11% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 5 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 wildfire risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.5% vs local median 3.8% in Reedley — 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.

Questions for listing agent

• It's been on market 50 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.

Repairs flagged (vision-AI assessment)

• Major: Exterior paint — Weathered and peeling paint on exterior.
• Major: Landscaping — Basic landscaping could be improved for curb appeal.
• Minor: Windows — Windows may need cleaning and minor repairs.