1800 Donna Ln

San Jose, CA 95124

$1,399,000D+

9 bd · 3.9 ba · 3,150 sqft · Built 1961 · MultiFamily · Active · 281 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,909/mo
• Mortgage (P&I): −$7,337
• Tax + insurance: −$1,518
• HOA: −$0
• Vac / Maint / Mgmt: −$2,291
• Net cashflow: $-236/mo
• Annual: $-2,833/yr
• Cap rate: 6.09%
• Cash-on-cash: -0.72%
• DSCR: 0.97
• 1% rule: 0.78%
• Cash to close: $391,720

Investor read

• This is a 3 × 3-bed/1.3-bath units multifamily listed at $1.40M.
• At list price, monthly cash flow is $-236 ($-3k/yr) — negative. Per door: $-79/mo.
• To cash-flow at today's rent, offer at most $1.36M (3.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.09M (22.0% below list).
• It's been on market 281 days — a 12% lower offer ($1.23M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.09M (22.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $10k of loan paydown is wiped out by about $42k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#68 in CA, #2,559 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• Campbell Union High (urban): math 56% / reading 75% proficiency, ranked #55 of 517 in CA (top 11%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Bagby Elementary (483 students, 15% FRL); Price Charter Middle (math 24% / reading 24%, grade F, #277 of 498 statewide, top 73%, 870 students, 18% FRL, charter); Branham High (math 61% / reading 82%, grade B+, #101 of 1,170 statewide, top 9%, 1,990 students, 30% FRL).
• Zoned-school proficiency averages 48% at this address vs 66% district-wide (-18 pts) — the specific schools serving this property underperform the Campbell Union High average; the district grade overstates school quality for this exact location.
• Market conditions: Rents rising (+3.1%/yr); 102 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.
• 6 sale attempts since 15y ago 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.
• Current owner paid $580k; list at $1.40M implies a 141% gain — meaningful room to come down on a strong offer.
• Cap rate 6.1% vs local median 1.6% in San Jose — 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 $10,909/mo this rent would consume 70% of the median local household income ($186k/yr) (locally 1234% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 281 days. Have you received any prior offers? Is the seller open to a 22% 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?
• 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?