17 Outer Banks Pl

Sacramento, CA 95835

$510,000D

4 bd · 2.5 ba · 1,992 sqft · Built 2006 · SingleFamily · Active · 73 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,207/mo
• Mortgage (P&I): −$2,674
• Tax + insurance: −$842
• HOA: −$77
• Vac / Maint / Mgmt: −$674
• Net cashflow: $-1,060/mo
• Annual: $-12,721/yr
• Cap rate: 4.09%
• Cash-on-cash: -7.86%
• DSCR: 0.65
• 1% rule: 0.63%
• Cash to close: $142,800

Investor read

• This is a 4-bed/2.5-bath single-family listed at $510k.
• At list price, monthly cash flow is $-1k ($-13k/yr) — negative.
• To cash-flow at today's rent, offer at most $323k (36.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $321k (37.1% below list).
• It's been on market 73 days — a 6% lower offer ($479k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $321k (37.1% below list) — sets the bar for 1% rule.
• In year one you build about $50k of equity ($4k loan paydown + $47k appreciation (9.2% 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: crime F, cost of living F.
• Natomas Unified (urban): math 33% / reading 60% proficiency, ranked #155 of 517 in CA (top 30%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: H. Allen Hight Elementary (802 students, 59% FRL); Natomas Middle (662 students, 65% FRL); Inderkum High (math 39% / reading 66%, grade C-, #289 of 1,170 statewide, top 25%, 2,266 students, 39% FRL).
• Watch-outs: flood insurance adds $125/mo.
• Market conditions: Rents rising (+1.4%/yr); 406 active listings in the ZIP; 28 comparable units currently listed for rent nearby; rentals leasing fast (median 13d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 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.
• Current owner paid $359k; 42% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$81k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone A99 (mandatory federal flood insurance); major wildfire risk; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.1% 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.
• This rent runs 34% of the median local income ($114k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 37% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 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?