6 Garden Ct

Belmont, CA 94002

$3,250,000C-

10 bd · 8.0 ba · 7,282 sqft · Built 1960 · MultiFamily · Active · 72 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $24,497/mo
• Mortgage (P&I): −$17,043
• Tax + insurance: −$2,701
• HOA: −$0
• Vac / Maint / Mgmt: −$5,144
• Net cashflow: $-391/mo
• Annual: $-4,695/yr
• Cap rate: 6.15%
• Cash-on-cash: -0.52%
• DSCR: 0.98
• 1% rule: 0.75%
• Cash to close: $910,000

Investor read

• This is a 10-bed/8.0-bath multifamily listed at $3.25M.
• At list price, monthly cash flow is $-391 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $3.18M (2.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $2.45M (24.6% below list).
• It's been on market 72 days — a 6% lower offer ($3.06M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.45M (24.6% below list) — sets the bar for 1% rule.
• In year one you build about $225k of equity ($22k loan paydown + $202k appreciation (6.2% local appreciation)).
• Location reads 82/100 on livability (#28 in CA, #1,062 nationally) — a professional / high-income tenant draw. Strengths: schools A+, commute A+, employment A+; Watch: cost of living F.
• Belmont-Redwood Shores Elementary (suburban): math 75% / reading 80% proficiency, ranked #25 of 517 in CA (top 5%) — strong family-tenant draw, lease renewals of 3-5y typical; only 6% free/reduced lunch — higher-income household profile.
• Market conditions: Rents rising fast (+4.6%/yr); 66 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.
• 2 sale attempts; this cycle's ask has dropped $700k (18%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $120k; list at $3.25M implies a 2620% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$360k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 6.1% vs local median 0.7% in Belmont — 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 $24,497/mo this rent would consume 144% of the median local household income ($204k/yr) (locally 939% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 72 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 A-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.
• 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.