265 Mclane Cir

Corning, CA 96021

$380,000C+

None bd · None ba · — sqft · Built 1972 · MultiFamily · Pending · 47 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,349/mo
• Mortgage (P&I): −$1,993
• Tax + insurance: −$324
• HOA: −$0
• Vac / Maint / Mgmt: −$913
• Net cashflow: $1,119/mo
• Annual: $13,431/yr
• Cap rate: 9.83%
• Cash-on-cash: 12.62%
• DSCR: 1.56
• 1% rule: 1.14%
• Cash to close: $106,400

Investor read

• This is a 4 × 2-bed/1.0-bath units multifamily listed at $380k.
• At list price, monthly cash flow is $1k ($13k/yr) — positive. Per door: $280/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $380k).
• It's been on market 47 days — a 3% lower offer ($369k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $369k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#417 in CA) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+; Watch: cost of living C-, crime F, amenities D-.
• Corning Union High (rural): math 12% / reading 41% proficiency, ranked #1,151 of 1,400 in CA (top 82%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Olive View Elementary (math 14% / reading 23%, grade F, #1,313 of 1,571 statewide, top 84%, 546 students, 88% FRL); Maywood Middle (math 24% / reading 36%, grade F, #218 of 498 statewide, top 44%, 434 students, 86% FRL); Corning High (math 12% / reading 37%, grade F, #826 of 1,170 statewide, top 80%, 1,031 students, 74% FRL).
• Market conditions: 178 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 186 units permitted in Tehama County in 2024 (0 in 5+ unit buildings).
• Tehama County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 2y 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 $129k; list at $380k implies a 195% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $106k cash investment doubles in ~10 years — after that, you're playing with house money.
• Climate carrying-cost: severe wildfire risk; extreme-heat days projected 6→14/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.8% vs local median 3.1% in Corning — 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 47 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 1972 — 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.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.