105 S Second St

Dunsmuir, CA 96025

$100,000B

2 bd · 1.0 ba · 800 sqft · Built — · SingleFamily · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,369/mo
• Mortgage (P&I): −$524
• Tax + insurance: −$593
• HOA: −$0
• Vac / Maint / Mgmt: −$288
• Net cashflow: $-36/mo
• Annual: $-429/yr
• Cap rate: 10.98%
• Cash-on-cash: 16.75%
• DSCR: 1.75
• 1% rule: 1.37%
• Cash to close: $28,000

Investor read

• This is a 2-bed/1.0-bath single-family listed at $100k. Condition is rated poor.
• At list price, monthly cash flow is $-36 ($-429/yr) — negative.
• To cash-flow at today's rent, offer at most $95k (5.2% below list).
• Meets the 1% rule at list price ($1k rent vs $100k).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $95k (5.2% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $691 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 53/100 on livability (#967 in CA) — a working-class tenant base; expect higher turnover. Strengths: housing A-; Watch: cost of living D+, crime F, amenities F.
• Dunsmuir Joint Union High (rural): math 25% / reading 75% proficiency, ranked #163 of 517 in CA (top 32%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Dunsmuir Elementary (math 15% / reading 24%, grade F, #1,256 of 1,571 statewide, top 81%, 93 students, 89% FRL); Dunsmuir High (math 24% / reading 75%, grade D+, #332 of 1,170 statewide, top 30%, 66 students, 74% FRL).
• Zoned-school proficiency averages 35% at this address vs 50% district-wide (-15 pts) — the specific schools serving this property underperform the Dunsmuir Joint Union High average; the district grade overstates school quality for this exact location.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: 36 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); 50 units permitted in Siskiyou County in 2024 (0 in 5+ unit buildings).
• Siskiyou County population projected at -26% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); major wildfire risk; extreme-heat days projected 10→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 11.0% vs local median 3.8% in Dunsmuir — 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

• 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Kitchen cabinets — Significant damage and debris
• Major: Countertops — Significant damage and debris
• Major: Appliances — Significant damage and debris
• Major: Bathroom — Significant damage and debris
• Major: Exterior siding — Significant damage and debris
• Major: Flooring — Significant damage and debris