407 - 413 Rinconada Ct

Benicia, CA 94510

$905,000C

20 bd · 12.0 ba · 2,333 sqft · Built 1976 · MultiFamily · Active · 60 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,011/mo
• Mortgage (P&I): −$4,746
• Tax + insurance: −$1,202
• HOA: −$0
• Vac / Maint / Mgmt: −$1,892
• Net cashflow: $1,170/mo
• Annual: $14,044/yr
• Cap rate: 7.84%
• Cash-on-cash: 5.54%
• DSCR: 1.25
• 1% rule: 1.00%
• Cash to close: $253,400

Investor read

• This is a 4 × 2-bed/1.5-bath units multifamily listed at $905k.
• At list price, monthly cash flow is $1k ($14k/yr) — positive. Per door: $293/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 $901k (0.4% below list).
• It's been on market 60 days — a 3% lower offer ($878k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $878k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $27k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#269 in CA) — a middle-class / working-renter tenant base. Strengths: employment A+, crime A, housing A-; Watch: amenities F, cost of living F, health & safety F.
• Benicia Unified (suburban): math 75% / reading 75% proficiency, ranked #35 of 517 in CA (top 7%) — strong family-tenant draw, lease renewals of 3-5y typical; only 17% free/reduced lunch — higher-income household profile.
• Market conditions: Rents soft (-0.8%/yr); 118 active listings in the ZIP; high-income renter base; 1,472 units permitted in Solano County in 2024 (131 in 5+ unit buildings).
• Solano County population projected at +15% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 10 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.
• Cap rate 7.8% vs local median 2.6% in Benicia — 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 $9,011/mo this rent would consume 89% of the median local household income ($121k/yr) (locally 1270% 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 60 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 1976 — 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.