125 College St

Woodland, CA 95695

$1,499,000B

100 bd · 40.0 ba · 5,400 sqft · Built 1930 · MultiFamily · Pending · 236 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $24,729/mo
• Mortgage (P&I): −$7,861
• Tax + insurance: −$1,996
• HOA: −$0
• Vac / Maint / Mgmt: −$5,193
• Net cashflow: $9,679/mo
• Annual: $116,144/yr
• Cap rate: 14.09%
• Cash-on-cash: 27.86%
• DSCR: 2.24
• 1% rule: 1.65%
• Cash to close: $419,720

Investor read

• This is a 10 × 10-bed/?-bath units multifamily listed at $1.50M.
• At list price, monthly cash flow is $10k ($116k/yr) — positive. Per door: $968/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($25k rent vs $1.50M).
• It's been on market 236 days — a 12% lower offer ($1.32M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.32M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $10k of loan paydown is wiped out by about $45k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#314 in CA) — a middle-class / working-renter tenant base. Strengths: employment A, housing A; Watch: amenities C-, schools F, cost of living F.
• Woodland Joint Unified (suburban): math 34% / reading 58% proficiency, ranked #171 of 517 in CA (top 33%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: flood insurance adds $66/mo; built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.5%/yr); 106 active listings in the ZIP; solid renter incomes; 721 units permitted in Yolo County in 2024 (260 in 5+ unit buildings).
• Yolo County population projected at +31% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $850k; list at $1.50M implies a 76% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 4.5% rent growth), your $420k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk; extreme-heat days projected 7→14/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 14.1% vs local median 3.4% in Woodland — 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 $24,729/mo this rent would consume 373% of the median local household income ($79k/yr) (locally 1397% 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 236 days. Have you received any prior offers? Is the seller open to a 12% 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?
• Built in 1930 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?