1118 Sir Francis Drake Blvd

Kentfield, CA 94904

$10,500,000B

None bd · None ba · — sqft · Built 1955 · MultiFamily · Active · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $118,600/mo
• Mortgage (P&I): −$55,063
• Tax + insurance: −$12,834
• HOA: −$0
• Vac / Maint / Mgmt: −$24,906
• Net cashflow: $25,796/mo
• Annual: $309,557/yr
• Cap rate: 9.24%
• Cash-on-cash: 10.53%
• DSCR: 1.47
• 1% rule: 1.13%
• Cash to close: $2,940,000

Investor read

• This is a multifamily listed at $10.50M.
• At list price, monthly cash flow is $26k ($310k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($119k rent vs $10.50M).
• It's been on market 26 days — a 2% lower offer ($10.34M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $10.34M (1.5% below list) — sets the bar for market timing.
• In year one you build about $643k of equity ($73k loan paydown + $570k appreciation (5.4% local appreciation)).
• Location reads 69/100 on livability (#245 in CA) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, health & safety B+; Watch: amenities F, cost of living F.
• Tamalpais Union High (suburban): math 62% / reading 78% proficiency, ranked #42 of 517 in CA (top 8%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Anthony G. Bacich Elementary (541 students, 13% FRL); Adaline E. Kent Middle (513 students, 11% FRL); Redwood High (math 67% / reading 81%, grade B+, #85 of 1,170 statewide, top 8%, 1,862 students, 8% FRL).
• Watch-outs: built in 1955 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.5%/yr); 51 active listings in the ZIP; 26 comparable units currently listed for rent nearby; rentals leasing fast (median 0d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 149 units permitted in Marin County in 2024 (5 in 5+ unit buildings).
• Marin County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $2.33M; list at $10.50M implies a 351% gain — meaningful room to come down on a strong offer.
• At projected returns (5.4% appreciation + 3.5% rent growth), your $2.94M cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$1.03M cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• At $118,600/mo this rent would consume 842% of the median local household income ($169k/yr) (locally 713% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Built in 1955 — 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 A-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.
• How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.