8831 Highway 70 Unit M

Yuba City, CA 95901

$39,995B-

2 bd · 2.0 ba · 768 sqft · Built 1980 · Land · Active · 109 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,506/mo
• Mortgage (P&I): −$210
• Tax + insurance: −$67
• HOA: −$0
• Vac / Maint / Mgmt: −$316
• Net cashflow: $913/mo
• Annual: $10,960/yr
• Cap rate: 33.70%
• Cash-on-cash: 97.87%
• DSCR: 5.35
• 1% rule: 3.77%
• Cash to close: $11,199

Investor read

• This is a 2-bed/2.0-bath land listed at $40k.
• At list price, monthly cash flow is $913 ($11k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $40k).
• It's been on market 109 days — a 9% lower offer ($36k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $36k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $276 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#111 in CA, #3,863 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, health & safety A+; Watch: crime D+, cost of living F.
• Marysville Joint Unified (suburban): math 14% / reading 28% proficiency, ranked #455 of 517 in CA (top 88%) — 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: Covillaud Elementary (math 23% / reading 39%, grade F, #821 of 1,571 statewide, top 53%, 519 students, 70% FRL); Anna Mckenney Intermediate (math 11% / reading 33%, grade F, #388 of 498 statewide, top 80%, 560 students, 76% FRL); Marysville High (math 12% / reading 52%, grade F, #674 of 1,170 statewide, top 59%, 1,028 students, 61% FRL) — zoned schools at 69% FRL track the district average.
• Market conditions: Rents rising (+1.9%/yr); 259 active listings in the ZIP; 750 units permitted in Yuba County in 2024 (41 in 5+ unit buildings).
• Yuba County population projected to shrink 3% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 1.9% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.
• Cap rate 33.7% vs local median 3.5% in Yuba City — 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 109 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• 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 D 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.