1106 E

Sacramento, CA 95814

$1,975,000B-

None bd · None ba · 5,000 sqft · Built 1900 · MultiFamily · Active · 45 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $24,174/mo
• Mortgage (P&I): −$10,357
• Tax + insurance: −$3,292
• HOA: −$0
• Vac / Maint / Mgmt: −$5,077
• Net cashflow: $5,449/mo
• Annual: $65,384/yr
• Cap rate: 9.60%
• Cash-on-cash: 11.82%
• DSCR: 1.53
• 1% rule: 1.22%
• Cash to close: $553,000

Investor read

• This is a 17 × 1-bed/1-bath units multifamily listed at $1.98M. Condition is rated good.
• At list price, monthly cash flow is $5k ($65k/yr) — positive. Per door: $321/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($24k rent vs $1.98M).
• It's been on market 45 days — a 3% lower offer ($1.92M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.92M (3.0% below list) — sets the bar for market timing.
• In year one you build about $19k of equity ($14k loan paydown + $5k appreciation (0.2% local appreciation)).
• Location reads 71/100 on livability (#218 in CA) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, housing A; Watch: schools D+, crime F, cost of living F.
• Sacramento City Unified (urban): math 32% / reading 43% proficiency, ranked #804 of 1,400 in CA (top 57%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 63% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-0.6%/yr); 44 active listings in the ZIP; 6,825 units permitted in Sacramento County in 2024 (1,752 in 5+ unit buildings).
• Sacramento County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 8 sale attempts since 3y ago; this cycle's ask is 187995% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• At projected returns (0.2% appreciation + 0.0% rent growth), your $553k cash investment doubles in ~7 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$122k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→14/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.6% vs local median 3.0% in Sacramento — 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 $24,174/mo this rent would consume 498% of the median local household income ($58k/yr) (locally 1600% 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 45 days. Have you received any prior offers? Is the seller open to a 3% 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 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Kitchen cabinets — Standard kitchen cabinets with dated design.
• Minor: Bathroom fixtures — Standard bathroom fixtures with dated design.