530 Columbia Ave

Sunnyvale, CA 94085

$2,080,000B+

54 bd · 42.0 ba · 4,101 sqft · Built 1961 · MultiFamily · Active · 45 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $25,195/mo
• Mortgage (P&I): −$10,908
• Tax + insurance: −$1,428
• HOA: −$0
• Vac / Maint / Mgmt: −$5,291
• Net cashflow: $7,568/mo
• Annual: $90,821/yr
• Cap rate: 10.66%
• Cash-on-cash: 15.59%
• DSCR: 1.69
• 1% rule: 1.21%
• Cash to close: $582,400

Investor read

• This is a 6 × 9-bed/7.0-bath units multifamily listed at $2.08M.
• At list price, monthly cash flow is $8k ($91k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($25k rent vs $2.08M).
• It's been on market 45 days — a 3% lower offer ($2.02M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.02M (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-1.9%/yr); year-one equity from $14k of loan paydown is wiped out by about $39k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#37 in CA, #1,258 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: cost of living F.
• Fremont Union High (urban): math 87% / reading 91% proficiency, ranked #6 of 517 in CA (top 1%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Fremont High (math 67% / reading 82%, grade B+, #78 of 1,170 statewide, top 7%, 2,171 students, 23% FRL).
• Zoned-school proficiency averages 74% at this address vs 89% district-wide (-14 pts) — the specific schools serving this property underperform the Fremont Union High average; the district grade overstates school quality for this exact location.
• Market conditions: Rents rising fast (+6.2%/yr); 45 active listings in the ZIP; high-income renter base; 3,838 units permitted in Santa Clara County in 2024 (1,886 in 5+ unit buildings).
• Santa Clara County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (-1.9% appreciation + 6.2% rent growth), your $582k cash investment doubles in ~6 years — after that, you're playing with house money.
• Cap rate 10.7% vs local median 1.2% in Sunnyvale — 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.
• At $25,195/mo this rent would consume 157% of the median local household income ($192k/yr) (locally 585% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 45 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1961 — 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.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.