312 N Fortuna Blvd

Fortuna, CA 95540

$1,425,000F

10 bd · 9.0 ba · 5,357 sqft · Built 1948 · MultiFamily · Active · 43 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,755/mo
• Mortgage (P&I): −$7,473
• Tax + insurance: −$1,946
• HOA: −$0
• Vac / Maint / Mgmt: −$2,259
• Net cashflow: $-923/mo
• Annual: $-11,070/yr
• Cap rate: 5.57%
• Cash-on-cash: -2.57%
• DSCR: 0.89
• 1% rule: 0.75%
• Cash to close: $399,000

Investor read

• This is a 2×2bd/2.0ba + 6×1bd/1.0ba + 1×?bd/1.0ba units multifamily listed at $1.43M.
• At list price, monthly cash flow is $-923 ($-11k/yr) — negative. Per door: $-103/mo.
• To cash-flow at today's rent, offer at most $1.26M (11.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.08M (24.5% below list).
• It's been on market 43 days — a 3% lower offer ($1.38M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.08M (24.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $10k of loan paydown is wiped out by about $43k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#246 in CA) — a middle-class / working-renter tenant base. Strengths: health & safety A+, commute A-; Watch: employment D+, amenities F, cost of living F.
• Fortuna Union High (town): math 17% / reading 44% proficiency, ranked #350 of 517 in CA (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Linell K. Walker Elementary (math 17% / reading 27%, grade F, #1,179 of 1,571 statewide, top 78%, 294 students, 82% FRL); Fortuna Middle (math 10% / reading 24%, grade F, #443 of 498 statewide, top 90%, 237 students, 80% FRL); Fortuna Union High (math 12% / reading 37%, grade F, #826 of 1,170 statewide, top 80%, 830 students, 47% FRL).
• Watch-outs: flood insurance adds $66/mo; built in 1948 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 110 active listings in the ZIP; 188 units permitted in Humboldt County in 2024 (17 in 5+ unit buildings).
• Humboldt County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 7 sale attempts since 3y 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.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.6% vs local median 2.4% in Fortuna — 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

• 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 43 days. Have you received any prior offers? Is the seller open to a 25% 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 1948 — 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?