2000 Squaw Vly

Sunnyside-Tahoe City, CA 96146

$6,000C-

1 bd · 1.0 ba · 600 sqft · Built 1970 · Condo · Active · 358 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,500/mo
• Mortgage (P&I): −$31
• Tax + insurance: −$10
• HOA: −$1,429
• Vac / Maint / Mgmt: −$315
• Net cashflow: $-285/mo
• Annual: $-3,426/yr
• Cap rate: -50.80%
• Cash-on-cash: -203.90%
• DSCR: -8.07
• 1% rule: 25.00%
• Cash to close: $1,680

Investor read

• This is a 1-bed/1.0-bath condo listed at $6k.
• At list price, monthly cash flow is $-285 ($-3k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $6k).
• It's been on market 358 days — a 12% lower offer ($5k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $5k (12.0% below list) — sets the bar for market timing.
• In year one you build about $234 of equity ($41 loan paydown + $193 appreciation (3.2% local appreciation)).
• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• Tahoe-Truckee Unified (town): math 44% / reading 56% proficiency, ranked #136 of 517 in CA (top 26%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: HOA is 95% of rent.
• Market conditions: 50 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 3,535 units permitted in Placer County in 2024 (689 in 5+ unit buildings).
• Placer County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 6y 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.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate -50.8% vs local median 0.1% in Sunnyside-Tahoe City — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 358 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.
• 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.