6589 Hohape Ave

Soda Bay, CA 95451

$379,000B-

12 bd · 9.0 ba · 2,200 sqft · Built 1959 · MultiFamily · Active · 472 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,900/mo
• Mortgage (P&I): −$1,988
• Tax + insurance: −$632
• HOA: −$0
• Vac / Maint / Mgmt: −$1,449
• Net cashflow: $2,832/mo
• Annual: $33,982/yr
• Cap rate: 15.26%
• Cash-on-cash: 32.02%
• DSCR: 2.42
• 1% rule: 1.82%
• Cash to close: $106,120

Investor read

• This is a 3 × 4-bed/3.0-bath units multifamily listed at $379k.
• At list price, monthly cash flow is $3k ($34k/yr) — positive. Per door: $944/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($7k rent vs $379k).
• It's been on market 472 days — a 12% lower offer ($334k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $334k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#595 in CA) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: health & safety C-, crime F, amenities F.
• Kelseyville Unified (town): math 18% / reading 33% proficiency, ranked #1,150 of 1,400 in CA (top 82%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Riviera Elementary (223 students, 60% FRL); Mountain Vista Middle (375 students, 76% FRL); Kelseyville High (math 8% / reading 42%, grade F, #811 of 1,170 statewide, top 70%, 540 students, 64% FRL) — zoned schools at 67% FRL track the district average.
• Watch-outs: built in 1959 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 273 active listings in the ZIP; 107 units permitted in Lake County in 2024 (40 in 5+ unit buildings).
• Lake County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 10 sale attempts since 10y ago; this cycle's ask has dropped $46k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $160k; list at $379k implies a 137% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $106k cash investment doubles in ~4 years — after that, you're playing with house money.
• Climate carrying-cost: severe wildfire risk; extreme-heat days projected 8→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 15.3% vs local median 3.8% in Soda Bay — 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 472 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 1959 — 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 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?