1-6 Hodel Ct

Hollister, CA 95023

$1,499,900D

None bd · None ba · 4,618 sqft · Built 1942 · MultiFamily · Active · 219 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $11,919/mo
• Mortgage (P&I): −$7,866
• Tax + insurance: −$2,500
• HOA: −$0
• Vac / Maint / Mgmt: −$2,503
• Net cashflow: $-949/mo
• Annual: $-11,394/yr
• Cap rate: 5.53%
• Cash-on-cash: -2.71%
• DSCR: 0.88
• 1% rule: 0.79%
• Cash to close: $419,972

Investor read

• This is a 4×1bd/1ba + 1×2bd/1ba units multifamily listed at $1.50M.
• At list price, monthly cash flow is $-949 ($-11k/yr) — negative. Per door: $-190/mo.
• To cash-flow at today's rent, offer at most $1.36M (9.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.19M (20.5% below list).
• It's been on market 219 days — a 12% lower offer ($1.32M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.19M (20.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $10k of loan paydown is wiped out by about $45k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#288 in CA) — a middle-class / working-renter tenant base. Strengths: amenities A+, health & safety A+, employment A-; Watch: commute F, cost of living F.
• San Benito High (town): math 29% / reading 55% proficiency, ranked #593 of 1,400 in CA (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1942 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.4%/yr); 277 active listings in the ZIP; high-income renter base; 281 units permitted in San Benito County in 2024 (0 in 5+ unit buildings).
• San Benito County population projected at +18% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 8 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.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.5% vs local median 3.0% in Hollister — 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 $11,919/mo this rent would consume 123% of the median local household income ($116k/yr) (locally 1352% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• It's been on market 219 days. Have you received any prior offers? Is the seller open to a 21% 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 1942 — 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.
• 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?