Is 187 Gali Way in Napa, CA a good investment?

CashFlowRE grades it F with a 3.5% cap rate and $-1,630/mo modeled cash flow at a $699,990 list price. See the full underwriting and recommended offer on the page.

What is the cap rate for 187 Gali Way?

The modeled cap rate is 3.5% — annual NOI divided by price, using CashFlowRE's rent and expense estimates.

What would this property rent for?

Estimated market rent is $4,060/month, from CashFlowRE's rent model.

F Composite 28.57

Why this score? — see what drove the F grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

ARV discount +7.8/15.0
Cash flow +5.1/30.0
Condition / age +5.0/5.0
Schools +4.0/10.0
Livability +3.5/5.0
Rent growth +2.4/5.0
1% rule +0.8/10.0
DSCR +0.0/10.0
Appreciation +0.0/10.0

$699,990

187 Gali Way · Napa, CA 94558

3 bd · 2.5 ba · 2,026 sqft · Townhouse · 141 Days on market

Built 2026 Excellent condition Garage $346/sqft · at area comps Est $705k · at est.

🖨 Deal sheet (PDF) 📄 Offer letter ✓ Due diligence

Listing remarks

Residence 2 at Copperleaf is calling you home! Revel in 2,026 square feet crafted to perfection, starting with a downstairs office, porch and exceptional walk-in pantry—with the option to add a wet bar to your chef-inspired kitchen. On the second floor of this townhouse plan, a generous loft and sun-splashed balcony create coveted space for making memories, bordering a convenient upstairs laundry room and primary suite with a walk-in closet and en suite bathroom.

Key facts

Generous loft
Wet bar option
Downstairs office

What this means for you Summary

Snapshot

This is a 3-bed/2.5-bath townhouse listed at $700k. Condition is rated excellent.

Deal economics

At list price, monthly cash flow is $-2k ($-20k/yr) — negative.
To cash-flow at today's rent, offer at most $464k (33.7% below list).
To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $406k (42.0% below list).
Recommended offer: $406k (42.0% below list) — sets the bar for 1% rule.
Cap rate 3.5% vs local median 2.3% in Napa — 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.

Location & tenants

Location reads 70/100 on livability (#227 in CA) — a middle-class / working-renter tenant base. Strengths: employment A+, health & safety A+, amenities B+; Watch: commute F, cost of living F.
Napa Valley Unified (urban): math 35% / reading 48% proficiency, ranked #599 of 1,400 in CA (top 43%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
Zoned schools: Phillips Elementary (381 students, 86% FRL); Silverado Middle (868 students, 77% FRL); Napa High (1,762 students, 73% FRL) — zoned schools average 78% FRL vs 38% district-wide (40 pts higher); higher-poverty schools than district average — tighter screening recommended.
Market conditions: Rents soft (-0.5%/yr); 841 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 427 units permitted in Napa County in 2024 (189 in 5+ unit buildings).
This rent runs 43% of the median local income ($113k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $21k of value loss. Plan a longer hold.
Napa County population projected at +14% by 2050 — modest demand growth; plan on rents tracking national, not racing it.

Negotiation context

It's been on market 141 days — a 12% lower offer ($616k) is reasonable based on typical stale-listing flexibility.

Recommended offer $406,040 (42.0% below list)

Questions for the 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 141 days. Have you received any prior offers? Is the seller open to a 42% 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.
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?
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.

Investment metrics

1% rule: 0.58% ✗
Cap rate: 3.50%
Cash-on-cash: -9.98%
DSCR: 0.56
GRM: 14.4

CMA / ARV

ARV (median comp): $704,990
List price: $699,990
Delta: -0.71%
Verdict: FAIR
Comps: 10 within 1.0 mi

Show comp detail 10 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
139 Compass Dr #2002	0.07mi	3/2.5	2,026 (0%)	7mo	$691,780	$341	90
179 Gali Way #2403	0.01mi	4/2.5 (+1)	2,076 (+2%)	1mo	$699,990	$337	90
177 Gali Way #2401	0.00mi	3/2.5	1,880 (-7%)	2mo	$699,990	$372	86
151 Compass Dr #2103	0.06mi	4/2.5 (+1)	2,076 (+2%)	4mo	$699,000	$337	85
131 Compass Dr #1903	0.09mi	4/2.5 (+1)	2,076 (+2%)	6mo	$709,990	$342	82
153 Compass Dr #2101	0.05mi	3/2.5	1,880 (-7%)	7mo	$653,990	$348	79
143 Compass Dr #2003	0.06mi	4/2.5 (+1)	2,076 (+2%)	11mo	$739,990	$356	79
119 Compass Dr #1803	0.10mi	4/2.5 (+1)	2,076 (+2%)	11mo	$785,166	$378	77
137 Compass Dr #2004	0.08mi	4/3.0 (+1)	2,130 (+5%)	11mo	$759,990	$357	72
101 Ripple Way #1704	0.11mi	4/3.0 (+1)	2,130 (+5%)	9mo	$766,047	$360	72

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 0.0% rent growth · sell at horizon

5-year hold

IRR: -37.5%
Equity multiple: -0.17×
Total profit: $-229,067
Equity at exit: $104,371

10-year hold

IRR: -77.6%
Equity multiple: -0.93×
Total profit: $-378,864
Equity at exit: $60,522

Cash invested: $195,997 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

Overall (STATE): 18 Strongly Tenant-Friendly
State California: 18 Strongly Tenant-Friendly · D+13
County: — inherits STATE
City: — inherits STATE

AB1482 statewide rent cap (10% + CPI). Cities (SF/LA/Berkeley) layer stricter rules. Just-cause statewide.

Methodology + full state rankings →

Buyer's market Market conditions within 1.0 mi — comparable homes for sale

Active competition Active MLS

For sale now: 18 active · 4 under contract
Months of supply: 27.0 mo (4%/mo absorbed)
Median asking: $759,990 ($359/sqft)
Median days on market: 63 d
This list price: lowest-priced of the active set
ARV vs active asking: -3.2% vs current asking $/sqft

Closed sales set the value; these active listings set current market conditions and a practical price ceiling.

ZIP-level market 94558

Rents YoY: -0.5%
Active inventory: 841
Price-to-rent: 14.4×

Monthly cashflow live

Estimated rent: $4,060 medium interval (Pro) →
Mortgage (P&I): −$3,671
Tax est. 1.5%: −$875 /mo · $10,500/yr
Insurance: −$292
HOA: −$0
Lot rent: −$0
Vacancy / Maint / Mgmt: −$853
Net cashflow: $-1,630

Break-even live

Break-even rent $6,123

Max offer price $464,162

Occupancy floor —

Sensitivity live

Price	-10% $-1,146	-5% $-1,388	+0% $-1,630	+5% $-1,872	+10% $-2,114
Rent	-10% $-1,951	-5% $-1,790	+0% $-1,630	+5% $-1,469	+10% $-1,309
Rate	-1.0pp $-1,277	-0.5pp $-1,452	base $-1,630	+0.5pp $-1,811	+1.0pp $-1,996

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

Down payment: $174,998
Closing costs: $21,000
Club membership (one-time): —
Reserves months: —
Total cash needed: —

Loan-product check · same deal, 3 products live

Conventional

25% down · 7.5% · 30yr

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

Personal DTI + credit; lowest rate.

DSCR

20% down · 8.5% · 30yr

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

No personal income docs; deal must DSCR.

Hard money

10% down · 12.0% · 12mo

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

Short-term bridge; refi at stabilization.

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
169 Splittail Way Napa, CA	4.0	4.0	2311	$4,100	$1.77	20d	1	0.00mi
303 Flagship Dr Napa, CA	4.0	3.0	2354	$4,875	$2.07	2d	1	0.05mi

Property features AI

Finance

Financial info: Listing status: ActiveList price: $780,624

Exterior

Parking: 2 garage spaces (2 total parking spaces)
Home design: Single-family residence (Residence 2 plan)New construction, spec home
Exterior features: Address: 187 Gali Way, Napa, CA 94558

Interior

Bedrooms: 3 bedrooms
Bathrooms: 2.25 total bathrooms — 1 full, 1 three-quarter, 1 half
Interior features: Spec home (Residence 2 plan)Living area approximately 2026

Listing history 50 events

2026-11-02

days on market $699,990 Active 141 DOM
2026-11-01

days on market $699,990 Active 140 DOM
2026-10-31

days on market $699,990 Active 139 DOM
2026-10-30

days on market $699,990 Active 138 DOM
2026-10-29

days on market $699,990 Active 137 DOM
2026-10-28

days on market $699,990 Active 136 DOM
2026-10-27

days on market $699,990 Active 135 DOM
2026-10-26

days on market $699,990 Active 134 DOM
2026-10-24

days on market $699,990 Active 132 DOM
2026-10-23

days on market $699,990 Active 131 DOM
2026-10-22

days on market $699,990 Active 130 DOM
2026-10-21

days on market $699,990 Active 129 DOM
2026-10-20

days on market $699,990 Active 128 DOM
2026-10-19

days on market $699,990 Active 127 DOM
2026-10-18

days on market $699,990 Active 126 DOM
2026-10-17

days on market $699,990 Active 125 DOM
2026-10-16

days on market $699,990 Active 124 DOM
2026-10-15

days on market $699,990 Active 123 DOM
2026-10-14

days on market $699,990 Active 122 DOM
2026-10-13

days on market $699,990 Active 121 DOM
2026-10-12

days on market $699,990 Active 120 DOM
2026-10-11

days on market $699,990 Active 119 DOM
2026-10-10

days on market $699,990 Active 118 DOM
2026-10-09

days on market $699,990 Active 117 DOM
2026-10-08

days on market $699,990 Active 116 DOM
2026-10-08

days on market $699,990 Active 115 DOM
2026-10-06

days on market $699,990 Active 114 DOM
2026-10-05

days on market $699,990 Active 113 DOM
2026-10-04

days on market $699,990 Active 112 DOM
2026-10-04

days on market $699,990 Active 111 DOM
2026-10-02

days on market $699,990 Active 110 DOM
2026-10-01

days on market $699,990 Active 109 DOM
2026-09-30

days on market $699,990 Active 108 DOM
2026-09-29

days on market $699,990 Active 107 DOM
2026-09-28

days on market $699,990 Active 106 DOM
2026-09-27

days on market $699,990 Active 105 DOM
2026-09-26

days on market $699,990 Active 104 DOM
2026-09-26

days on market $699,990 Active 103 DOM
2026-09-24

days on market $699,990 Active 102 DOM
2026-09-23

days on market $699,990 Active 101 DOM
2026-09-22

days on market $699,990 Active 100 DOM
2026-09-21

days on market $699,990 Active 99 DOM
2026-09-20

days on market $699,990 Active 98 DOM
2026-09-19

days on market $699,990 Active 97 DOM
2026-09-18

days on market $699,990 Active 96 DOM
2026-09-17

days on market $699,990 Active 95 DOM
2026-09-16

days on market $699,990 Active 94 DOM
2026-09-15

days on market $699,990 Active 93 DOM
2026-09-14

days on market $699,990 Active 92 DOM
2026-09-13

days on market $699,990 Active 91 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Nearby sold comps map

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Walkable amenities ~0.75 mi

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Taxation est. · year 1

Rental income: $48,725
− Mortgage interest: −$39,210
− Property taxes: −$10,500
− Insurance: −$3,500
− Repairs & maintenance: −$3,898
− Management: −$3,898
− Depreciation: −$20,363
Taxable loss: −$32,645

Your marginal tax rate % combined federal + state — saved on this device

Est. tax savings @ 24.0%: +$7,835
After-tax cash flow: $-11,722/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 20 photos

Excellent 100/100 None rehab

This townhouse is in excellent condition with modern amenities and a well-maintained exterior. It is move-in ready and would benefit from minor updates to the exterior and landscaping to further enhance its value.

Value-add opportunities

Both Painting the exterior — Fresh paint can enhance curb appeal and property value ↑
Both Landscaping improvements — A well-maintained garden can increase both resale and rental value ↑
Both Adding a smart home system — Modern technology can increase both resale and rental value ↑

Zoned Schools

Elementary Phillips Elementary Middle Silverado Middle High Napa High

Schools (NCES district)

District: Napa Valley Unified
NCES district ID: 0626640
Math proficiency: 35% ▲ 1.00%
Reading proficiency: 48% ▲ 2.00%
Median HH income: $72,007
Composite: 40.18/100
National rank: #7827
State rank: #599 of 1400 in CA

B Composite livability gradescore 70/100

Livability — Napa

Score: 70/100
State rank: #227
US rank: #7435

Category grades

Amenities B+ Commute F Cost of living F Crime B- Employment A+ Housing B- Health & safety A+ User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

Census place: Napa, CA
County: Napa County · 153,987 people
City population: 91,371
Metro: Napa, CA
Population (ZIP): 63,657
Household income: $113,269
Rent vs Own: 32.5% rent · 67.5% own
Severe rent burden: 13% of renters

Population outlook (Napa County) Hauer SSP2

Today (2025): 153,987 people
By 2030: 159,490 · +3.6%
By 2040: 168,796 · +9.6%
By 2050: 176,213 · +14.4%
By 2075: 190,113 · +23.5%
By 2100: 190,528 · +23.7%

Race, ethnicity, and origin ACS 2023

Neighborhood character: Diverse neighborhood (Simpson 0.56)
Race & ethnicity: White 54% Hispanic / Latino 37% Two or more races 15% Asian 3% Native American 1%
Hispanic origin (detail): Mexican 31%
Languages at home: 68% English-only · Spanish 28% Other Indo-European 1% Tagalog/Filipino 1%

Political lean MEDSL · Napa

2024 margin: Solid D (+34.9) · D 65.9% · R 31.1% · Other 3.0%
2008→2024 swing: +2.4pp toward D · 2008: 32.5pp · 2024: 34.9pp
All cycles: 2024: D+34.9 2020: D+40.4 2016: D+35.2 2012: D+25.7 2008: D+32.5

Not yet ingested

Civics: —

Market trends

HPI YoY: ▼ -842.94%
Current HPI: 296.0661
Rent YoY: ▼ -0.50%
Metro: Napa, CA
State GDP YoY: ▲ 3.21%
F500 in state: 116

Industry mix (Fortune 500 HQ in CA)

Industry	F500 HQs	Revenue
Technology	27	$1,492B
#4 Apple Cupertino $391.0B #7 Alphabet Mountain View $350.0B #22 Meta Platforms Menlo Park $164.5B #31 NVIDIA Santa Clara $130.5B #83 Cisco Systems San Jose $53.8B #84 HP Inc Palo Alto $53.6B #86 Intel Santa Clara $53.1B #88 Broadcom Palo Alto $52.4B #109 Qualcomm San Diego $39.0B #112 Salesforce San Francisco $38.4B #140 Applied Materials Santa Clara $27.2B #155 AMD Santa Clara $22.7B #330 Intuit Mountain View $16.3B #242 Lam Research Fremont $15.8B #252 Western Digital San Jose $13.0B #366 ServiceNow Santa Clara $11.0B #282 KLA Corporation Milpitas $10.8B #405 Workday Pleasanton $7.9B #302 Arista Networks Santa Clara $6.7B #365 NetApp San Jose $6.5B #352 Synopsys Sunnyvale $6.1B #331 Autodesk San Francisco $6.0B #395 Juniper Networks Sunnyvale $5.6B #403 Cadence Design Systems San Jose $4.6B #430 Veeva Systems Pleasanton $2.4B #397 Teradata San Diego $1.8B #461 Dolby Laboratories San Francisco $1.3B
Financial Services	3	$174B
#33 Wells Fargo San Francisco $125.4B #272 Visa San Francisco $35.9B #308 LPL Financial Holdings San Diego $12.3B
Retail	3	$44B
#162 Ross Stores Dublin $20.9B #231 Gap San Francisco $15.6B #323 Williams-Sonoma San Francisco $7.7B
Insurance	3	$26B
#241 Pacific Life Newport Beach $13.4B #293 First American Financial Santa Ana $7.7B #482 Mercury General Los Angeles $5.2B
Media / Entertainment	2	$115B
#46 Walt Disney Burbank $91.4B #263 Live Nation Entertainment Beverly Hills $23.2B
Pharmaceuticals / Biotech	2	$62B
#126 Amgen Thousand Oaks $33.3B #137 Gilead Sciences Foster City $28.4B

Cash-flow waterfall

monthly

Sold comps — $/sqft

last 12 mo · ≤1 mi

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