3939 Pacific Blvd

San Mateo, CA 94403

$2,150,000B-

6 bd · 5.0 ba · 5,016 sqft · Built 1958 · MultiFamily · Active · 387 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $25,407/mo
• Mortgage (P&I): −$11,275
• Tax + insurance: −$2,343
• HOA: −$0
• Vac / Maint / Mgmt: −$5,335
• Net cashflow: $6,454/mo
• Annual: $77,444/yr
• Cap rate: 9.89%
• Cash-on-cash: 12.86%
• DSCR: 1.57
• 1% rule: 1.18%
• Cash to close: $602,000

Investor read

• This is a 5 × 6-bed/5.0-bath units multifamily listed at $2.15M.
• At list price, monthly cash flow is $6k ($77k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($25k rent vs $2.15M).
• It's been on market 387 days — a 12% lower offer ($1.89M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.89M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $15k of loan paydown is wiped out by about $64k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#56 in CA, #2,095 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: cost of living F.
• San Mateo Union High (suburban): math 50% / reading 70% proficiency, ranked #178 of 1,400 in CA (top 13%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: built in 1958 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.4%/yr); 63 active listings in the ZIP; high-income renter base; 1,019 units permitted in San Mateo County in 2024 (484 in 5+ unit buildings).
• San Mateo County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 6 sale attempts 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.
• Current owner paid $475k; list at $2.15M implies a 353% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 2.4% rent growth), your $602k cash investment doubles in ~10 years — after that, you're playing with house money.
• Cap rate 9.9% vs local median 1.2% in San Mateo — 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 $25,407/mo this rent would consume 174% of the median local household income ($175k/yr) (locally 1543% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 387 days. Have you received any prior offers? Is the seller open to a 12% 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?
• Built in 1958 — 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 B-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?
• 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.