27428 Georgia Ave

Parkwood, CA 93637

$499,900C-

6 bd · 4.0 ba · 2,000 sqft · Built 1992 · MultiFamily · Pending · 35 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,817/mo
• Mortgage (P&I): −$2,622
• Tax + insurance: −$597
• HOA: −$0
• Vac / Maint / Mgmt: −$1,012
• Net cashflow: $587/mo
• Annual: $7,042/yr
• Cap rate: 8.00%
• Cash-on-cash: 6.08%
• DSCR: 1.27
• 1% rule: 0.96%
• Cash to close: $139,972

Investor read

• This is a 2 × 3-bed/2.0-bath units multifamily listed at $500k.
• At list price, monthly cash flow is $587 ($7k/yr) — positive. Per door: $293/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $482k (3.6% below list).
• It's been on market 35 days — a 3% lower offer ($485k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $482k (3.6% 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 $15k of value loss. Plan a longer hold.
• Location reads 52/100 on livability (#1,012 in CA) — a working-class tenant base; expect higher turnover. Strengths: housing A+; Watch: cost of living C-, schools F, amenities F.
• Madera Unified (urban): math 22% / reading 35% proficiency, ranked #1,095 of 1,400 in CA (top 78%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 75% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: flood insurance adds $122/mo.
• Market conditions: Rents rising fast (+4.8%/yr); 103 active listings in the ZIP; 1,346 units permitted in Madera County in 2024 (8 in 5+ unit buildings).
• Madera County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 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.
• Climate carrying-cost: in FEMA flood zone AO (mandatory federal flood insurance); severe wildfire risk; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $4,817/mo this rent would consume 81% of the median local household income ($72k/yr) (locally 1537% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 35 days. Have you received any prior offers? Is the seller open to a 4% 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.