485 Sanchez Ct

Sonoma, CA 95476

$1,029,900D

3 bd · 2.5 ba · 1,861 sqft · Built — · MultiFamily · Active · 94 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,501/mo
• Mortgage (P&I): −$5,401
• Tax + insurance: −$1,716
• HOA: −$277
• Vac / Maint / Mgmt: −$1,995
• Net cashflow: $111/mo
• Annual: $1,337/yr
• Cap rate: 6.42%
• Cash-on-cash: 0.46%
• DSCR: 1.02
• 1% rule: 0.92%
• Cash to close: $288,372

Investor read

• This is a 3-bed/2.5-bath multifamily listed at $1.03M. Condition is rated excellent.
• At list price, monthly cash flow is $111 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $950k (7.7% below list).
• It's been on market 94 days — a 9% lower offer ($937k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $937k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $31k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#146 in CA, #4,943 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, employment A+, health & safety A+; Watch: commute F, cost of living F.
• Sonoma Valley Unified (town): math 27% / reading 42% proficiency, ranked #849 of 1,400 in CA (top 61%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Sassarini Elementary (251 students, 59% FRL); Altimira Middle (392 students, 53% FRL); Sonoma Valley High (1,127 students, 41% FRL) — zoned schools at 51% FRL track the district average.
• Market conditions: Rents flat; 265 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,039 units permitted in Sonoma County in 2024 (185 in 5+ unit buildings).
• Sonoma County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts 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 6.4% vs local median 1.3% in Sonoma — 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 $9,501/mo this rent would consume 108% of the median local household income ($105k/yr) (locally 1218% 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 94 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• 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.