113 Gonda St

Pajaro, CA 95076

$6,250,000D

15 bd · 5.0 ba · 5,764 sqft · Built 1989 · MultiFamily · Active · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $50,970/mo
• Mortgage (P&I): −$32,776
• Tax + insurance: −$7,421
• HOA: −$0
• Vac / Maint / Mgmt: −$10,704
• Net cashflow: $70/mo
• Annual: $841/yr
• Cap rate: 6.33%
• Cash-on-cash: 0.13%
• DSCR: 1.01
• 1% rule: 0.82%
• Cash to close: $1,750,000

Investor read

• This is a 8×3.0bd/1.5ba + 8×3.0bd/2.0ba units multifamily listed at $6.25M.
• At list price, monthly cash flow is $70 ($841/yr) — positive. Per door: $4/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 $5.10M (18.4% below list).
• It's been on market 26 days — a 2% lower offer ($6.16M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $5.10M (18.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $43k of loan paydown is wiped out by about $188k of value loss. Plan a longer hold.
• Location reads 54/100 on livability (#907 in CA) — a working-class tenant base; expect higher turnover. Strengths: commute A+; Watch: employment D+, schools F, amenities F.
• Pajaro Valley Unified (urban): math 75% / reading 75% proficiency, ranked #43 of 517 in CA (top 8%) — strong family-tenant draw, lease renewals of 3-5y typical; 67% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: flood insurance adds $122/mo.
• Market conditions: Rents rising fast (+6.6%/yr); 122 active listings in the ZIP; solid renter incomes; 530 units permitted in Monterey County in 2024 (50 in 5+ unit buildings).
• Monterey County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 2y 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 $1.87M; list at $6.25M implies a 234% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: in FEMA flood zone AO (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.
• At $50,970/mo this rent would consume 671% of the median local household income ($91k/yr) (locally 3051% 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?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.
• 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.