20 Gonda St

Pajaro, CA 95076

$765,000D-

3 bd · 1.0 ba · 684 sqft · Built 1926 · MultiFamily · Active · 73 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,881/mo
• Mortgage (P&I): −$4,012
• Tax + insurance: −$1,301
• HOA: −$0
• Vac / Maint / Mgmt: −$1,235
• Net cashflow: $-666/mo
• Annual: $-7,996/yr
• Cap rate: 5.44%
• Cash-on-cash: -3.05%
• DSCR: 0.86
• 1% rule: 0.77%
• Cash to close: $214,200

Investor read

• This is a 3-bed/1.0-bath multifamily listed at $765k.
• At list price, monthly cash flow is $-666 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $647k (15.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $588k (23.1% below list).
• It's been on market 73 days — a 6% lower offer ($719k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $588k (23.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $23k of value loss. Plan a longer hold.
• Location reads 54/100 on livability (#907 in CA) — a working-class tenant base; expect higher turnover. Strengths: commute A+; Watch: employment D+, schools F, amenities F.
• Pajaro Valley Unified (urban): math 75% / reading 75% proficiency, ranked #43 of 517 in CA (top 8%) — strong family-tenant draw, lease renewals of 3-5y typical; 67% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: flood insurance adds $122/mo; built in 1926 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+6.6%/yr); 122 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 530 units permitted in Monterey County in 2024 (50 in 5+ unit buildings).
• Monterey County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 6 sale attempts since 22y ago; this cycle's ask has dropped $64k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $513k; 49% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: in FEMA flood zone AO (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.
• At $5,881/mo this rent would consume 77% of the median local household income ($91k/yr) (locally 3051% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 73 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
• Built in 1926 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?