500 19th Ave

San Mateo, CA 94402

$2,600,000B-

6 bd · 6.0 ba · 5,624 sqft · Built 1958 · MultiFamily · Active · 33 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $30,493/mo
• Mortgage (P&I): −$13,635
• Tax + insurance: −$2,994
• HOA: −$3,732
• Vac / Maint / Mgmt: −$6,404
• Net cashflow: $3,728/mo
• Annual: $44,742/yr
• Cap rate: 8.01%
• Cash-on-cash: 6.15%
• DSCR: 1.27
• 1% rule: 1.17%
• Cash to close: $728,000

Investor read

• This is a 6 × 6-bed/6.0-bath units multifamily listed at $2.60M.
• At list price, monthly cash flow is $4k ($45k/yr) — positive. Per door: $621/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($30k rent vs $2.60M).
• It's been on market 33 days — a 3% lower offer ($2.52M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.52M (3.0% below list) — sets the bar for market timing.
• In year one you build about $202k of equity ($18k loan paydown + $184k appreciation (7.1% local appreciation)).
• Location reads 79/100 on livability (#56 in CA, #2,095 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: cost of living F.
• San Mateo Union High (suburban): math 50% / reading 70% proficiency, ranked #178 of 1,400 in CA (top 13%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Hillsdale High (1,629 students, 19% FRL).
• Watch-outs: built in 1958 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+7.0%/yr); 48 active listings in the ZIP; high-income renter base; 1,019 units permitted in San Mateo County in 2024 (484 in 5+ unit buildings).
• San Mateo County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 3y ago; this cycle's ask is 94514% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $475k; list at $2.60M implies a 447% gain — meaningful room to come down on a strong offer.
• At projected returns (7.1% appreciation + 7.0% rent growth), your $728k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$323k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 8.0% vs local median 1.2% in San Mateo — 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.

Questions for listing agent

• It's been on market 33 days. Have you received any prior offers? Is the seller open to a 3% 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 1958 — 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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.