6505 Pearson Ln · North Highlands, CA 95660

$275,000

3 bd · 1.0 ba · 972 sqft · SingleFamily public records · 5 Days on market

Built 1956 6,098 sqft lot Est $377k · 27% under

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Why this score? — see what drove the D+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• ARV discount +15.0/15.0
• Cash flow +13.6/30.0
• DSCR +4.1/10.0
• Rent growth +3.9/5.0
• Schools +3.1/10.0
• Livability +3.1/5.0
• 1% rule +2.6/10.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Charming Fixer-Upper in North Highlands. This 3 bedroom 1 bath home presents an exciting opportunity of Investors or First-Time homebuyer looking to create their own space utilizing the FHA 203k program or the conventional rehab programs.

Key facts

• 6,098 sq ft lot
• Garage
• Built 1956

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $275k.

Deal economics

• At list price, monthly cash flow is $16 ($190/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $208k (24.4% below list).
• Recommended offer: $208k (24.4% below list) — sets the bar for 1% rule.
• Cap rate 6.4% vs local median 4.1% in North Highlands — 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.

Location & tenants

• Location reads 61/100 on livability (#523 in CA) — a middle-class / working-renter tenant base. Strengths: housing A+; Watch: employment C-, schools D, crime F.
• Twin Rivers Unified (suburban): math 29% / reading 37% proficiency, ranked #970 of 1,400 in CA (top 69%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 76% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising fast (+5.7%/yr); 108 active listings in the ZIP; 31 comparable units currently listed for rent nearby; rentals leasing fast (median 3d on market — plan ~1-2 weeks tenant-placement turnaround); 6,825 units permitted in Sacramento County in 2024 (1,752 in 5+ unit buildings).
• This rent runs 37% of the median local income ($68k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Sacramento County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: built in 1956 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $207,892 (24.4% below list)

Questions for the listing agent

1. Built in 1956 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
4. Crime grade is F 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?
5. 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?
6. 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.
7. 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.
8. 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.

Investment metrics

• 1% rule: 0.76% ✗
• Cap rate: 6.36%
• Cash-on-cash: 0.25%
• DSCR: 1.01
• GRM: 11.0

CMA / ARV

• ARV (on-the-fly): $377,136
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
6505 Channing Dr	0.58mi	3/1.0	972 (0%)	1mo	$350,000	$360	72
6333 Whitecliff Way	0.38mi	3/1.0	1,045 (+8%)	2mo	$330,000	$316	68
3626 Milton Way	0.69mi	3/1.0	972 (0%)	1mo	$395,000	$406	67
3937 Fargo Way	0.26mi	3/1.5	1,102 (+13%)	0mo	$317,000	$288	63
4465 Hardwick Way	0.54mi	3/1.0	1,045 (+8%)	2mo	$370,000	$354	61
6717 Whitsett Dr	0.31mi	3/1.5	1,102 (+13%)	1mo	$337,000	$306	60
7006 Plumber Way	0.61mi	3/1.0	901 (-7%)	2mo	$386,000	$428	58
6015 Gay Way	0.68mi	4/1.0 (+1)	1,001 (+3%)	2mo	$277,750	$277	57
4013 David Dr	0.69mi	3/1.0	884 (-9%)	1mo	$380,000	$430	52
6533 Larry Way	0.69mi	3/1.0	884 (-9%)	2mo	$359,900	$407	50
5851 Larry Way	0.52mi	4/2.0 (+1)	1,113 (+14%)	3mo	$432,000	$388	40
7116 Kimmel Dr	0.74mi	2/1.0 (-1)	832 (-14%)	1mo	$354,950	$427	36

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 5.69% rent growth · sell at horizon

5-year hold

• IRR: -13.4%
• Equity multiple: 0.51×
• Total profit: $-37,915
• Equity at exit: $41,003

10-year hold

• IRR: -1.2%
• Equity multiple: 0.91×
• Total profit: $-7,222
• Equity at exit: $23,777

Cash invested: $77,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 18 Strongly Tenant-Friendly
• State California: 18 Strongly Tenant-Friendly · D+13
• County: — inherits STATE
• City: — inherits STATE

AB1482 statewide rent cap (10% + CPI). Cities (SF/LA/Berkeley) layer stricter rules. Just-cause statewide.

Methodology + full state rankings →

ZIP-level market 95660

• Rents YoY: 5.7%
• Active inventory: 108
• Price-to-rent: 11.0×

Monthly cashflow live

• Estimated rent: $2,079 high
• Mortgage (P&I): −$1,442
• Tax from tax record: −$70 /mo · $838/yr
• Insurance: −$115
• HOA: −$0
• Vacancy / Maint / Mgmt: −$437
• Net cashflow: $16

Break-even live

Break-even rent $2,059

Max offer price $275,000

Occupancy floor 94%

Sensitivity live

Price	-10% $171	-5% $94	+0% $16	+5% $-62	+10% $-140
Rent	-10% $-148	-5% $-66	+0% $16	+5% $98	+10% $180
Rate	-1.0pp $154	-0.5pp $86	base $16	+0.5pp $-55	+1.0pp $-128

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $68,750
• Closing costs: $8,250
• Reserves months: —
• Total cash needed: —

Rent comps 31 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
6625 Medora Dr North Highlands, CA	3.0	1.0	972	$2,100	$2.16	11d	1	0.20mi
6629 Medora Dr North Highlands, CA	3.0	2.0	1090	$1,995	$1.83	44d	1	0.20mi
3844 Milton Way North Highlands, CA	3.0	1.5	972	$2,250	$2.31	2d	1	0.44mi
6830 Walerga Rd Sacramento, CA	2.0	1.0–2.0	836	$1,752	$2.09	2d	6	0.51mi
6909 Stoneman Dr North Highlands, CA	3.0	1.0	1113	$1,995	$1.79	13d	1	0.59mi
6037 N Haven Dr North Highlands, CA	3.0	1.0	884	$2,150	$2.43	2d	1	0.73mi
4440 Oakhollow Dr Sacramento, CA	1.0–2.0	1.0	842	$1,590	$1.89	2d	8	0.85mi
5966 Walerga Rd #4 Sacramento, CA	2.0	1.0	924	$1,550	$1.68	2d	1	0.87mi
5954 Walerga Rd #1 Sacramento, CA	2.0	1.0	800	$1,345	$1.68	2d	1	0.90mi
5954 Walerga Rd #3 Sacramento, CA	2.0	1.0	840	$1,395	$1.66	11d	1	0.90mi
5948 Walerga Rd #3 Sacramento, CA	2.0	1.0	840	$1,395	$1.66	2d	1	0.91mi
5733 San Vincente Way North Highlands, CA	3.0	1.0	925	$2,195	$2.37	2d	1	0.99mi
7200 Pepperwood Knoll Ln Sacramento, CA	1.0–2.0	1.0–2.0	854	$1,855	$2.17	2d	3	1.02mi
5800 Hamilton St Sacramento, CA	1.0–2.0	1.0–2.0	823	$1,770	$2.15	2d	4	1.04mi
4215 Palm Ave Sacramento, CA	1.0–2.0	1.0–2.0	775	$1,660	$2.14	2d	3	1.15mi
5625 San Vincente Way North Highlands, CA	3.0	1.0	875	$2,150	$2.46	2d	1	1.16mi
5674 Hillsdale Blvd Sacramento, CA	2.0	1.5	933	$1,600	$1.71	2d	1	1.19mi
5614 Hillsdale Blvd Unit A Sacramento, CA	2.0	1.5	933	$1,450	$1.55	22d	1	1.20mi
4400 Antelope Rd Antelope, CA	2.0	2.0	875	$2,150	$2.46	44d	1	1.30mi
4400 Antelope Rd Antelope, CA	2.0	2.0	907	$2,150	$2.37	3d	1	1.30mi
5516 Palmdale Way Sacramento, CA	3.0	2.0	1115	$2,250	$2.02	21d	1	1.31mi
5520 Harrison St North Highlands, CA	2.0	1.0	735	$1,478	$2.01	8d	1	1.32mi
4549 Greenholme Dr #2 Sacramento, CA	2.0	1.0	840	$2,000	$2.38	3d	1	1.33mi
5109 Andrea Blvd Sacramento, CA	2.0	1.0	828	$1,769	$2.14	2d	2	1.37mi
3825 Little Rock Dr Antelope, CA	1.0–3.0	1.0–2.0	848	$2,500	$2.95	2d	5	1.42mi
4758 Greenholme Dr Sacramento, CA	2.0	1.0	924	$1,595	$1.73	44d	1	1.42mi
6841 Concert Way Sacramento, CA	2.0	2.0	1000	$1,995	$2.00	2d	1	1.42mi
5600 Walerga Rd #4 Sacramento, CA	2.0	1.0	924	$1,700	$1.84	2d	1	1.43mi
5416 Jackson St North Highlands, CA	1.0–2.0	1.0–2.0	720	$1,750	$2.43	2d	30	1.44mi
5728 Luce Ave McClellan Park, CA	2.0–3.0	1.0	1058	$2,190	$2.07	2d	3	1.46mi
3652 McClellan Dr North Highlands, CA	2.0	1.0	750	$1,650	$2.20	2d	1	1.49mi

Tax reassessment forecast CA · Resets to sale price

• Current annual tax: $838 · $70/mo
• Projected year-2 tax: $2,090 · $174/mo
• Expected delta: +$1,252/yr (+$104/mo · 149.4%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 7/10 Severe 7 d/yr ≥102°F today · 16 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 10/10 Extreme 34 unhealthy d/yr today · 38 by 30 yrs out

Taxation est. · year 1

• Rental income: $24,947
• − Mortgage interest: −$15,404
• − Property taxes: −$838
• − Insurance: −$1,375
• − Repairs & maintenance: −$1,996
• − Management: −$1,996
• − Depreciation: −$8,000
• Taxable loss: −$4,662
• Est. tax savings @ 24.0%: +$1,119
• After-tax cash flow: $1,308/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Twin Rivers Unified
• NCES district ID: 0601332
• Math proficiency: 29% ▲ 2.00%
• Reading proficiency: 37% ▲ 2.00%
• Median HH income: $42,481
• Composite: 30.67/100
• National rank: #11437
• State rank: #970 of 1400 in CA

Livability — North Highlands

• Score: 61/100
• State rank: #523
• US rank: #17613

Category grades

Amenities F Commute F Cost of living F Crime F Employment C- Housing A+ Health & safety C User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: North Highlands, CA
• County: Sacramento County · 1,539,646 people
• City population: 56,900
• Metro: Sacramento-Roseville-Folsom, CA
• Population (ZIP): 35,451
• Household income: $68,235
• Rent vs Own: 38.0% rent · 62.0% own
• Severe rent burden: 1300.0

Population outlook (Sacramento County) Hauer SSP2

• Today (2025): 1,660,763 people
• By 2030: 1,732,990 · +4.3%
• By 2040: 1,855,755 · +11.7%
• By 2050: 1,941,335 · +16.9%
• By 2075: 2,046,162 · +23.2%
• By 2100: 1,961,444 · +18.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.69)
• Race & ethnicity: White 41% Hispanic / Latino 37% Two or more races 16% Black 9% Asian 7%
• Hispanic origin (detail): Mexican 29%
• Common ancestry: Subsaharan African 5% Scotch-Irish 2% Scandinavian 2%
• Foreign-born: 28% · Canada, Vietnam
• Languages at home: 56% English-only · Spanish 25% Russian/Polish/Slavic 9% Other Indo-European 5%

Political lean MEDSL · Sacramento

• 2024 margin: D (+19.7) · D 58.1% · R 38.4% · Other 3.5%
• 2008→2024 swing: +0.7pp no change · 2008: 19.0pp · 2024: 19.7pp
• All cycles: 2024: D+19.7 2020: D+25.3 2016: D+23.7 2012: D+16.3 2008: D+19.0

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -273.83%
• Current HPI: 438.1022
• Rent YoY: ▲ 5.69%
• Metro: Sacramento-Roseville-Folsom, CA
• State GDP YoY: ▲ 3.21%
• F500 in state: 116

Industry mix (Fortune 500 HQ in CA)

Industry	F500 HQs	Revenue
▸Technology	27	$1,492B
▸Financial Services	3	$174B
▸Retail	3	$44B
▸Insurance	3	$26B
▸Media / Entertainment	2	$115B
▸Pharmaceuticals / Biotech	2	$62B

Property tax history

+3.4%/yr

Latest (2025): $838 · +5.0% YoY. Source: county tax records.