4300 Pine St Unit Tenant

Dunsmuir, CA 96025

$450,000D-

16 bd · 16.0 ba · 2,000 sqft · Built — · MultiFamily · Active · 103 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,900/mo
• Mortgage (P&I): −$2,360
• Tax + insurance: −$816
• HOA: −$0
• Vac / Maint / Mgmt: −$819
• Net cashflow: $-95/mo
• Annual: $-1,144/yr
• Cap rate: 6.22%
• Cash-on-cash: -0.27%
• DSCR: 0.99
• 1% rule: 0.87%
• Cash to close: $126,000

Investor read

• This is a 4 × 1-bed/1.0-bath units multifamily listed at $450k.
• At list price, monthly cash flow is $-95 ($-1k/yr) — negative. Per door: $-24/mo.
• To cash-flow at today's rent, offer at most $436k (3.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $390k (13.3% below list).
• It's been on market 103 days — a 9% lower offer ($410k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $390k (13.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads 53/100 on livability (#967 in CA) — a working-class tenant base; expect higher turnover. Strengths: housing A-; Watch: cost of living D+, crime F, amenities F.
• Dunsmuir Joint Union High (rural): math 25% / reading 75% proficiency, ranked #163 of 517 in CA (top 32%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Dunsmuir Elementary (math 15% / reading 24%, grade F, #1,256 of 1,571 statewide, top 81%, 93 students, 89% FRL); Dunsmuir High (math 24% / reading 75%, grade D+, #332 of 1,170 statewide, top 30%, 66 students, 74% FRL).
• Zoned-school proficiency averages 35% at this address vs 50% district-wide (-15 pts) — the specific schools serving this property underperform the Dunsmuir Joint Union High average; the district grade overstates school quality for this exact location.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 36 active listings in the ZIP; 50 units permitted in Siskiyou County in 2024 (0 in 5+ unit buildings).
• Siskiyou County population projected at -26% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: severe flood risk; major wildfire risk; extreme-heat days projected 10→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.2% vs local median 3.8% in Dunsmuir — 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 103 days. Have you received any prior offers? Is the seller open to a 13% 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?
• 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 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?