7857 S Sayonara Dr

Citrus Heights, CA 95610

$855,000D

8 bd · 4.0 ba · 3,576 sqft · Built 1963 · MultiFamily · Active · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,062/mo
• Mortgage (P&I): −$4,484
• Tax + insurance: −$966
• HOA: −$0
• Vac / Maint / Mgmt: −$1,483
• Net cashflow: $129/mo
• Annual: $1,548/yr
• Cap rate: 6.47%
• Cash-on-cash: 0.65%
• DSCR: 1.03
• 1% rule: 0.83%
• Cash to close: $239,400

Investor read

• This is a 4 × 2-bed/1.0-bath units multifamily listed at $855k.
• At list price, monthly cash flow is $129 ($2k/yr) — positive. Per door: $32/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $706k (17.4% below list).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $706k (17.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $26k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#614 in CA) — a middle-class / working-renter tenant base. Strengths: housing A+; Watch: crime D-, amenities F, commute F.
• San Juan Unified (suburban): math 40% / reading 62% proficiency, ranked #138 of 517 in CA (top 27%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Orangevale Open K-8 (572 students, 22% FRL); Will Rogers Middle (math 24% / reading 24%, grade F, #277 of 498 statewide, top 73%, 605 students, 71% FRL); El Camino Fundamental High (math 34% / reading 62%, grade D, #378 of 1,170 statewide, top 32%, 1,246 students, 50% FRL) — zoned schools at 48% FRL track the district average.
• Zoned-school proficiency averages 36% at this address vs 51% district-wide (-15 pts) — the specific schools serving this property underperform the San Juan Unified average; the district grade overstates school quality for this exact location.
• Market conditions: Rents rising fast (+4.1%/yr); 163 active listings in the ZIP; solid renter incomes; 6,825 units permitted in Sacramento County in 2024 (1,752 in 5+ unit buildings).
• Sacramento County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $550k; list at $855k implies a 55% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.5% vs local median 3.4% in Citrus Heights — 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 $7,062/mo this rent would consume 102% of the median local household income ($83k/yr) (locally 1772% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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 1963 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D 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?
• 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.