2089 Us-101 101

Benbow, CA 95542

$1,199,888C+

None bd · 0.5 ba · 11,500 sqft · Built 1946 · MultiFamily · Active · 24 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $14,234/mo
• Mortgage (P&I): −$6,292
• Tax + insurance: −$2,000
• HOA: −$0
• Vac / Maint / Mgmt: −$2,989
• Net cashflow: $2,953/mo
• Annual: $35,432/yr
• Cap rate: 9.25%
• Cash-on-cash: 10.55%
• DSCR: 1.47
• 1% rule: 1.19%
• Cash to close: $335,969

Investor read

• This is a ?-bed/0.5-bath multifamily listed at $1.20M. Condition is rated good.
• At list price, monthly cash flow is $3k ($35k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($14k rent vs $1.20M).
• It's been on market 24 days — a 2% lower offer ($1.18M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.18M (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $8k of loan paydown is wiped out by about $36k of value loss. Plan a longer hold.
• Location reads 44/100 on livability (#1,336 in CA) — a working-class tenant base; expect higher turnover. Watch: schools C-, health & safety C-, crime F.
• Southern Humboldt Joint Unified (rural): math 28% / reading 41% proficiency, ranked #928 of 1,400 in CA (top 66%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1946 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 65 active listings in the ZIP; 188 units permitted in Humboldt County in 2024 (17 in 5+ unit buildings).
• Humboldt County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

Questions for listing agent

• Built in 1946 — 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.
• 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.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.