831 Cathedral Ct

Arden-Arcade, CA 95825

$799,000D

8 bd · 4.5 ba · 3,600 sqft · Built 1964 · MultiFamily · Active · 115 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,987/mo
• Mortgage (P&I): −$4,190
• Tax + insurance: −$760
• HOA: −$0
• Vac / Maint / Mgmt: −$1,467
• Net cashflow: $570/mo
• Annual: $6,838/yr
• Cap rate: 7.15%
• Cash-on-cash: 3.06%
• DSCR: 1.14
• 1% rule: 0.87%
• Cash to close: $223,720

Investor read

• This is a 4 × 2-bed/1.1-bath units multifamily listed at $799k.
• At list price, monthly cash flow is $570 ($7k/yr) — positive. Per door: $142/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 $699k (12.6% below list).
• It's been on market 115 days — a 9% lower offer ($727k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $699k (12.6% 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 $24k of value loss. Plan a longer hold.
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• 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: Greer Elementary (711 students, 79% FRL); Arcade Fundamental Middle (math 24% / reading 24%, grade F, #277 of 498 statewide, top 73%, 407 students, 68% 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 average 66% FRL vs 44% district-wide (22 pts higher); higher-poverty schools than district average — tighter screening recommended.
• 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 (+1.9%/yr); 133 active listings in the ZIP; 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 $330k; list at $799k implies a 142% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major flood risk; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.1% vs local median 2.3% in Arden-Arcade — 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 $6,987/mo this rent would consume 130% of the median local household income ($65k/yr) (locally 3983% 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 115 days. Have you received any prior offers? Is the seller open to a 13% 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 1964 — 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.
• 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.