607 Grand Ave · San Luis Obispo, CA 93405

$10,750,000

40 bd · 20.0 ba · 6,798 sqft · MultiFamily public records · 147 Days on market

Built 1966 $1581/sqft · 146% above area Est $14243k · 25% under

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Why this score? — see what drove the F grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• ARV discount +15.0/15.0
• Schools +4.6/10.0
• Cash flow +4.2/30.0
• Rent growth +4.2/5.0
• Livability +3.7/5.0
• Condition / age +2.5/5.0
• 1% rule +0.0/10.0
• DSCR +0.0/10.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 20 units. confirmed

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks MLS

607 Grand Avenue is a 20-unit student housing community accessed directly from Grand Ave and located just 0.4 miles from the Cal Poly campus, offering exceptional proximity that is easily reachable by car, bike, or on foot. The property is comprised entirely of townhome-style units with almost identical floorplans across the community. Each unit features a 2/1 layout with an average of approximately 3-4 students per unit, optimizing roommate configurations while maintaining functional living layouts. The community is anchored by an outdoor amenity area featuring a basketball court, grills, and shared community space. The adjacent vacant space currently used for storage, backing the laundry room, presents compelling ADU potential, with the likely capability to convert into a studio.

Key facts

• Townhome style units
• Basketball court
• Outdoor amenity area

Tags

• DIRECT ACCESS FROM GRAND AVE
• PROXIMITY TO CAL POLY CAMPUS
• TOWNHOME STYLE UNITS
• OUTDOOR AMENITY AREA
• BASKETBALL COURT
• SHARED COMMUNITY SPACE

What this means for you Summary

Snapshot

• This is a 20 × 2-bed/1-bath units multifamily listed at $10.75M.

Deal economics

• At list price, monthly cash flow is $-29k ($-348k/yr) — negative. Per door: $-1k/mo.
• To cash-flow at today's rent, offer at most $5.62M (47.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $4.66M (56.6% below list).
• Recommended offer: $4.66M (56.6% below list) — sets the bar for 1% rule.
• Cap rate 3.1% vs local median 2.1% in San Luis Obispo — 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.

Location & tenants

• Location reads 74/100 on livability (#132 in CA, #4,576 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, health & safety A+; Watch: crime F, cost of living F.
• San Luis Coastal Unified (urban): math 50% / reading 58% proficiency, ranked #118 of 517 in CA (top 23%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Pacheco Elementary (math 34% / reading 41%, grade F, #667 of 1,571 statewide, top 43%, 482 students, 36% FRL); Laguna Middle (math 57% / reading 65%, grade B+, #57 of 498 statewide, top 12%, 789 students, 30% FRL); San Luis Obispo High (math 47% / reading 67%, grade C, #234 of 1,170 statewide, top 21%, 1,644 students, 27% FRL) — zoned schools at 31% FRL track the district average.
• Market conditions: Rents rising fast (+7.0%/yr); 51 active listings in the ZIP; 1,104 units permitted in San Luis Obispo County in 2024 (273 in 5+ unit buildings).
• At $46,620/mo this rent would consume 926% of the median local household income ($60k/yr) (locally 3368% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $74k of loan paydown is wiped out by about $322k of value loss. Plan a longer hold.
• San Luis Obispo County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 147 days — a 12% lower offer ($9.46M) is reasonable based on typical stale-listing flexibility.
• 11 sale attempts since 19y 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.
• Current owner paid $4.53M; list at $10.75M implies a 138% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $4,662,000 (56.6% below list)

Questions for the listing agent

1. 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?
2. It's been on market 147 days. Have you received any prior offers? Is the seller open to a 57% concession, seller financing, or rate buy-down credit?
3. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
4. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
5. Built in 1966 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
6. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
7. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
8. Schools are B-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?
9. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
10. 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?
11. 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.
12. 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.
13. 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.

Investment metrics

• 1% rule: 0.43% ✗
• Cap rate: 3.05%
• Cash-on-cash: -11.57%
• DSCR: 0.49
• GRM: 19.2

CMA / ARV

• ARV (median comp): $14,243,194
• List price: $10,750,000
• Delta: -24.53%
• Verdict: UNDERPRICED
• Comps: 1 within 2.0 mi

Projected returns pro-forma

-3.0% appreciation · 6.97% rent growth · sell at horizon

5-year hold

• IRR: -34.1%
• Equity multiple: -0.13×
• Total profit: $-3,400,608
• Equity at exit: $1,602,860

10-year hold

• IRR: -28.4%
• Equity multiple: -0.49×
• Total profit: $-4,496,306
• Equity at exit: $929,464

Cash invested: $3,010,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 18 Strongly Tenant-Friendly
• State California: 18 Strongly Tenant-Friendly · D+13
• County: — inherits STATE
• City: — inherits STATE

AB1482 statewide rent cap (10% + CPI). Cities (SF/LA/Berkeley) layer stricter rules. Just-cause statewide.

Methodology + full state rankings →

ZIP-level market 93405

• Rents YoY: 7.0%
• Active inventory: 51
• Price-to-rent: 384.3×

Monthly cashflow live

• Estimated rent: $46,620 medium
• Mortgage (P&I): −$56,374
• Tax from tax record: −$4,989 /mo · $59,865/yr
• Insurance: −$4,479
• HOA: −$0
• Vacancy / Maint / Mgmt: −$9,790
• Net cashflow: $-29,012

Break-even live

Break-even rent $83,344

Max offer price $5,624,860

Occupancy floor —

Sensitivity live

Price	-10% $-22,927	-5% $-25,970	+0% $-29,012	+5% $-32,055	+10% $-35,098
Rent	-10% $-32,695	-5% $-30,854	+0% $-29,012	+5% $-27,171	+10% $-25,329
Rate	-1.0pp $-23,599	-0.5pp $-26,278	base $-29,012	+0.5pp $-31,798	+1.0pp $-34,632

20-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 20× units	2	1	$46,620
Total (20 units)			$46,620

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $2,687,500
• Closing costs: $322,500
• Reserves months: —
• Total cash needed: —

Listing history 44 events

1. 2026-06-18
   days on market $10,750,000 Active 147 DOM
2. 2026-06-17
   days on market $10,750,000 Active 146 DOM
3. 2026-06-16
   days on market $10,750,000 Active 145 DOM
4. 2026-06-15
   days on market $10,750,000 Active 144 DOM
5. 2026-06-14
   days on market $10,750,000 Active 142 DOM
6. 2026-06-13
   days on market $10,750,000 Active 141 DOM
7. 2026-06-10
   days on market $10,750,000 Active 139 DOM
8. 2026-06-09
   days on market $10,750,000 Active 138 DOM
9. 2026-06-08
   days on market $10,750,000 Active 137 DOM
10. 2026-06-07
    days on market $10,750,000 Active 136 DOM
11. 2026-06-03
    days on market $10,750,000 Active 132 DOM
12. 2026-06-02
    days on market $10,750,000 Active 131 DOM
13. 2026-06-01
    days on market $10,750,000 Active 130 DOM
14. 2026-05-31
    days on market $10,750,000 Active 129 DOM
15. 2026-05-30
    days on market $10,750,000 Active 128 DOM
16. 2026-05-07
    price $2,800
17. 2026-03-21
    price $3,250
18. 2026-01-22
    listed $10,750,000 Active 792-char remark

    Show marketing remark (792 chars)

    607 Grand Avenue is a 20-unit student housing community accessed directly from Grand Ave and located just 0.4 miles from the Cal Poly campus, offering exceptional proximity that is easily reachable by car, bike, or on foot. The property is comprised entirely of townhome-style units with almost identical floorplans across the community. Each unit features a 2/1 layout with an average of approximately 3-4 students per unit, optimizing roommate configurations while maintaining functional living layouts. The community is anchored by an outdoor amenity area featuring a basketball court, grills, and shared community space. The adjacent vacant space currently used for storage, backing the laundry room, presents compelling ADU potential, with the likely capability to convert into a studio.

19. 2025-12-16
    listed $3,400
20. 2025-10-22
    historical $2,400
21. 2025-06-26
    price $2,400
22. 2025-06-07
    price $2,600
23. 2025-05-13
    price $2,750
24. 2025-02-03
    listed $3,250
25. 2024-03-31
    historical $3,250
26. 2024-03-16
    price $3,250
27. 2024-02-04
    listed $3,150
28. 2023-07-30
    historical
29. 2017-04-06
    historical
30. 2015-10-15
    soldstatus $4,525,000
31. 2015-10-15
    historical
32. 2015-10-15
    soldstatus $4,525,000
33. 2015-10-15
    soldstatus $4,525,000
34. 2015-09-02
    historical
35. 2015-08-26
    listed $4,200,000
36. 2015-08-26
    listed $4,200,000
37. 2015-08-26
    listed $4,200,000
38. 2013-02-20
    historical
39. 2012-08-31
    listed $3,950,000
40. 2012-08-31
    listed $3,950,000
41. 2008-03-12
    soldstatus $3,900,000
42. 2008-03-12
    historical
43. 2007-08-31
    listed $4,200,000
44. 2007-08-31
    listed $4,200,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast CA · Resets to sale price

• Current annual tax: $59,865 · $4,989/mo
• Projected year-2 tax: $81,700 · $6,808/mo
• Expected delta: +$21,835/yr (+$1,820/mo · 36.5%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 6/10 Major
• 🌡 Heat 4/10 Moderate 7 d/yr ≥85°F today · 19 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 6/10 Major 11 unhealthy d/yr today · 11 by 30 yrs out

Taxation est. · year 1

• Rental income: $559,440
• − Mortgage interest: −$602,167
• − Property taxes: −$59,865
• − Insurance: −$53,750
• − Repairs & maintenance: −$44,755
• − Management: −$44,755
• − Depreciation: −$312,727
• Taxable loss: −$558,580
• Est. tax savings @ 24.0%: +$134,059
• After-tax cash flow: $-214,088/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: San Luis Coastal Unified
• NCES district ID: 0634800
• Math proficiency: 50% ▼ -14.00%
• Reading proficiency: 58% ▼ -12.00%
• Median HH income: $53,428
• Composite: 46.4/100
• National rank: #2455
• State rank: #118 of 517 in CA

Livability — San Luis Obispo

• Score: 74/100
• State rank: #132
• US rank: #4576

Category grades

Amenities A+ Commute A+ Cost of living F Crime F Employment C+ Housing C Health & safety A+ User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: San Luis Obispo, CA
• County: San Luis Obispo County · 224,651 people
• City population: 54,204
• Metro: San Luis Obispo-Paso Robles, CA
• Population (ZIP): 25,002
• Household income: $60,399
• Rent vs Own: 65.3% rent · 34.7% own
• Severe rent burden: 3368.0

Population outlook (San Luis Obispo County) Hauer SSP2

• Today (2025): 306,977 people
• By 2030: 320,378 · +4.4%
• By 2040: 343,933 · +12.0%
• By 2050: 366,853 · +19.5%
• By 2075: 428,329 · +39.5%
• By 2100: 460,687 · +50.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (72%)
• Race & ethnicity: White 72% Hispanic / Latino 15% Two or more races 10% Asian 6% Black 1%
• Hispanic origin (detail): Mexican 11%
• Common ancestry: Italian 4% Lithuanian 2% Portuguese 2%
• Foreign-born: 6% · Canada, China
• Languages at home: 84% English-only · Spanish 8% Other Indo-European 2% Chinese 1%

Political lean MEDSL · San Luis Obispo

• 2024 margin: D (+10.9) · D 53.9% · R 43.1% · Other 3.0%
• 2008→2024 swing: +5.5pp toward D · 2008: 5.4pp · 2024: 10.9pp
• All cycles: 2024: D+10.9 2020: D+13.1 2016: D+8.3 2012: D+1.0 2008: D+5.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -840.08%
• Current HPI: 379.5701
• Rent YoY: ▲ 6.97%
• Metro: San Luis Obispo-Paso Robles, CA
• State GDP YoY: ▲ 3.21%
• F500 in state: 116

Industry mix (Fortune 500 HQ in CA)

Industry	F500 HQs	Revenue
▸Technology	27	$1,492B
▸Financial Services	3	$174B
▸Retail	3	$44B
▸Insurance	3	$26B
▸Media / Entertainment	2	$115B
▸Pharmaceuticals / Biotech	2	$62B

Price history

-99.9% since first listed

29 events — show timeline

• 2026-05-07 Price Changed $2,800 APPFOLIO
• 2026-03-21 Price Changed $3,250 APPFOLIO
• 2026-01-22 Listed $10,750,000 SBMLS
• 2025-12-16 Listed for Rent $3,400 APPFOLIO
• 2025-10-22 Rental Removed $2,400 APPFOLIO
• 2025-06-26 Price Changed $2,400 APPFOLIO
• 2025-06-07 Price Changed $2,600 APPFOLIO
• 2025-05-13 Price Changed $2,750 APPFOLIO
• 2025-02-03 Listed for Rent $3,250 APPFOLIO
• 2024-03-31 Rental Removed $3,250 APPFOLIO
• 2024-03-16 Price Changed $3,250 APPFOLIO
• 2024-02-04 Listed for Rent $3,150 APPFOLIO
• 2023-07-30 Rental Removed — APPFOLIO
• 2017-04-06 Listing Removed — NSBCRMLS
• 2015-10-15 Sold (Public Records) $4,525,000 Public Records
• 2015-10-15 Sold (MLS) $4,525,000 CRMLS
• 2015-10-15 Listing Removed — NSBCRMLS
• 2015-10-15 Sold (MLS) $4,525,000 SDMLS
• 2015-09-02 Listing Removed — CRMLS
• 2015-08-26 Listed $4,200,000 CRMLS
• 2015-08-26 Listed $4,200,000 NSBCRMLS
• 2015-08-26 Listed $4,200,000 SDMLS
• 2013-02-20 Listing Removed — CRMLS
• 2012-08-31 Listed $3,950,000 NSBCRMLS
• 2012-08-31 Listed $3,950,000 CRMLS
• 2008-03-12 Listing Removed — NSBCRMLS
• 2008-03-12 Sold (MLS) $3,900,000 CRMLS
• 2007-08-31 Listed $4,200,000 NSBCRMLS
• 2007-08-31 Listed $4,200,000 CRMLS

Property tax history

+2.8%/yr

Latest (2025): $59,865 · +1.5% YoY. Source: county tax records.