222 Laurel St #105

San Carlos, CA 94070

$675,000D

2 bd · 1.0 ba · 930 sqft · Built 1963 · Condo · Active · 94 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,671/mo
• Mortgage (P&I): −$3,540
• Tax + insurance: −$1,125
• HOA: −$482
• Vac / Maint / Mgmt: −$981
• Net cashflow: $-1,457/mo
• Annual: $-17,480/yr
• Cap rate: 3.70%
• Cash-on-cash: -9.25%
• DSCR: 0.59
• 1% rule: 0.69%
• Cash to close: $189,000

Investor read

• This is a 2-bed/1.0-bath condo listed at $675k.
• At list price, monthly cash flow is $-1k ($-17k/yr) — negative.
• To cash-flow at today's rent, offer at most $464k (31.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $467k (30.8% below list).
• It's been on market 94 days — a 9% lower offer ($614k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $464k (31.2% below list) — sets the bar for cash-flow.
• In year one you build about $50k of equity ($5k loan paydown + $45k appreciation (6.7% local appreciation)).
• Location reads 82/100 on livability (#30 in CA, #1,083 nationally) — a professional / high-income tenant draw. Strengths: commute A+, employment A+, health & safety A+; Watch: amenities D, cost of living F.
• San Carlos Elementary (suburban): math 70% / reading 77% proficiency, ranked #30 of 517 in CA (top 6%) — strong family-tenant draw, lease renewals of 3-5y typical; only 5% free/reduced lunch — higher-income household profile.
• Zoned schools: Central Middle (math 68% / reading 75%, grade A, #34 of 498 statewide, top 7%, 427 students, 11% FRL).
• Market conditions: Rents rising fast (+5.9%/yr); 55 active listings in the ZIP; 19 comparable units currently listed for rent nearby; rentals leasing fast (median 0d on market — plan ~1-2 weeks tenant-placement turnaround); 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.
• 2 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.
• By year 2, paydown + projected appreciation supports a ~$79k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 3.7% vs local median 0.7% in San Carlos — 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?
• It's been on market 94 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• Built in 1963 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 A-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?