4316 E Olive Ave Unit A-E

Fresno, CA 93702

$640,000D-

25 bd · 25.0 ba · 2,200 sqft · Built 1963 · MultiFamily · Active · 32 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,421/mo
• Mortgage (P&I): −$3,356
• Tax + insurance: −$1,067
• HOA: −$0
• Vac / Maint / Mgmt: −$1,138
• Net cashflow: $-140/mo
• Annual: $-1,684/yr
• Cap rate: 6.03%
• Cash-on-cash: -0.94%
• DSCR: 0.96
• 1% rule: 0.85%
• Cash to close: $179,200

Investor read

• This is a 5 × 1-bed/1-bath units multifamily listed at $640k. Condition is rated fair.
• At list price, monthly cash flow is $-140 ($-2k/yr) — negative. Per door: $-28/mo.
• To cash-flow at today's rent, offer at most $620k (3.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $542k (15.3% below list).
• It's been on market 32 days — a 3% lower offer ($621k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $542k (15.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $19k of value loss. Plan a longer hold.
• Location reads 62/100 on livability (#469 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+; Watch: amenities D+, employment D+, schools D.
• Fresno Unified (urban): math 18% / reading 47% proficiency, ranked #327 of 517 in CA (top 63%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 77% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents soft (-0.9%/yr); 67 active listings in the ZIP; 2,426 units permitted in Fresno County in 2024 (296 in 5+ unit buildings).
• Fresno County population projected at +11% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Climate carrying-cost: extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.0% vs local median 3.7% in Fresno — 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 $5,421/mo this rent would consume 138% of the median local household income ($47k/yr) (locally 2958% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 32 days. Have you received any prior offers? Is the seller open to a 15% 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1963 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?

Repairs flagged (vision-AI assessment)

• Major: fencing — Needs replacement to improve security and curb appeal
• Major: landscaping — Overgrown yard needs trimming and planting