1775 Marco Polo Way

Burlingame, CA 94010

$16,498,000B-

44 bd · 4.0 ba · 23,075 sqft · Built 1957 · MultiFamily · Active · 458 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $172,950/mo
• Mortgage (P&I): −$86,517
• Tax + insurance: −$20,908
• HOA: −$0
• Vac / Maint / Mgmt: −$36,320
• Net cashflow: $29,206/mo
• Annual: $350,467/yr
• Cap rate: 8.42%
• Cash-on-cash: 7.59%
• DSCR: 1.34
• 1% rule: 1.05%
• Cash to close: $4,619,440

Investor read

• This is a 40 × 32-bed/40.0-bath units multifamily listed at $16.50M.
• At list price, monthly cash flow is $29k ($350k/yr) — positive. Per door: $730/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($173k rent vs $16.50M).
• It's been on market 458 days — a 12% lower offer ($14.52M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $14.52M (12.0% below list) — sets the bar for market timing.
• In year one you build about $1.36M of equity ($114k loan paydown + $1.24M appreciation (7.5% local appreciation)).
• Location reads 82/100 on livability (#36 in CA, #1,222 nationally) — a professional / high-income tenant draw. Strengths: schools 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 1957 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.0%/yr); 69 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.
• 8 sale attempts; this cycle's ask has dropped $3.50M (18%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $13.50M; 22% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (7.5% appreciation + 3.0% rent growth), your $4.62M cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$2.17M cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 8.4% vs local median 0.8% in Burlingame — 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 $172,950/mo this rent would consume 1054% of the median local household income ($197k/yr) (locally 1199% 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 458 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 1957 — 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 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?
• 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.