247 D

San Rafael, CA 94901

$6,110,000B-

432 bd · 324.0 ba · 13,040 sqft · Built 1965 · MultiFamily · Active · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $76,315/mo
• Mortgage (P&I): −$32,042
• Tax + insurance: −$5,407
• HOA: −$0
• Vac / Maint / Mgmt: −$16,026
• Net cashflow: $22,840/mo
• Annual: $274,082/yr
• Cap rate: 10.78%
• Cash-on-cash: 16.02%
• DSCR: 1.71
• 1% rule: 1.25%
• Cash to close: $1,710,800

Investor read

• This is a 18 × 24-bed/18.0-bath units multifamily listed at $6.11M.
• At list price, monthly cash flow is $23k ($274k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($76k rent vs $6.11M).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $42k of loan paydown is wiped out by about $183k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#358 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+, employment A+, health & safety B+; Watch: schools C-, crime F, amenities F.
• San Rafael City High (urban): math 43% / reading 56% proficiency, ranked #126 of 517 in CA (top 24%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising fast (+4.7%/yr); 132 active listings in the ZIP; high-income renter base; 149 units permitted in Marin County in 2024 (5 in 5+ unit buildings).
• Marin County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts 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.
• At projected returns (-3.0% appreciation + 4.7% rent growth), your $1.71M cash investment doubles in ~7 years — after that, you're playing with house money.
• Cap rate 10.8% vs local median 1.7% in San Rafael — 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 $76,315/mo this rent would consume 794% of the median local household income ($115k/yr) (locally 2382% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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 1965 — 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.
• 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?
• 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.
• 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.
• 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.