1539 Eddy Dr

Mount Shasta, CA 96067

$795,000C

4 bd · 3.0 ba · 3,082 sqft · Built 1976 · SingleFamily · Active · 446 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,000/mo
• Mortgage (P&I): −$4,169
• Tax + insurance: −$691
• HOA: −$0
• Vac / Maint / Mgmt: −$1,680
• Net cashflow: $1,460/mo
• Annual: $17,514/yr
• Cap rate: 8.50%
• Cash-on-cash: 7.87%
• DSCR: 1.35
• 1% rule: 1.01%
• Cash to close: $222,600

Investor read

• This is a 4-bed/3.0-bath single-family listed at $795k.
• At list price, monthly cash flow is $1k ($18k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $795k).
• It's been on market 446 days — a 12% lower offer ($700k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $700k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $24k of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#405 in CA) — a middle-class / working-renter tenant base. Strengths: health & safety A+; Watch: housing C-, employment D+, crime F.
• Siskiyou Union High (rural): math 25% / reading 55% proficiency, ranked #763 of 1,400 in CA (top 54%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 12% free/reduced lunch — higher-income household profile.
• Market conditions: 116 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 50 units permitted in Siskiyou County in 2024 (0 in 5+ unit buildings).
• Siskiyou County population projected at -26% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts since 13y ago; this cycle's ask has dropped $185k (19%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $334k; list at $795k implies a 138% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.5% vs local median 4.8% in Mount Shasta — 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.

Questions for listing agent

• It's been on market 446 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1976 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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 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.