172 Permanente Way

Mountain View, CA 94041

$2,199,999D

9 bd · 3.0 ba · 3,024 sqft · Built 1962 · MultiFamily · Active · 97 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $14,880/mo
• Mortgage (P&I): −$11,537
• Tax + insurance: −$3,064
• HOA: −$0
• Vac / Maint / Mgmt: −$3,125
• Net cashflow: $-2,846/mo
• Annual: $-34,152/yr
• Cap rate: 4.74%
• Cash-on-cash: -5.54%
• DSCR: 0.75
• 1% rule: 0.68%
• Cash to close: $616,000

Investor read

• This is a 3 × 3-bed/1.0-bath units multifamily listed at $2.20M.
• At list price, monthly cash flow is $-3k ($-34k/yr) — negative. Per door: $-949/mo.
• To cash-flow at today's rent, offer at most $1.70M (22.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.49M (32.4% below list).
• It's been on market 97 days — a 9% lower offer ($2.00M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.49M (32.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.1%/yr); year-one equity from $15k of loan paydown is wiped out by about $23k of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#14 in CA, #671 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: crime D+, cost of living F.
• Mountain View-Los Altos Union High (urban): math 77% / reading 86% proficiency, ranked #11 of 517 in CA (top 2%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Stevenson Elementary (456 students, 8% FRL); Isaac Newton Graham Middle (881 students, 31% FRL); Los Altos High (math 74% / reading 83%, grade A-, #54 of 1,170 statewide, top 5%, 2,141 students, 13% FRL).
• Market conditions: Rents rising (+3.4%/yr); 23 active listings in the ZIP; high-income renter base; 3,838 units permitted in Santa Clara County in 2024 (1,886 in 5+ unit buildings).
• Santa Clara County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 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.
• Cap rate 4.7% vs local median 1.4% in Mountain View — 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 $14,880/mo this rent would consume 100% of the median local household income ($179k/yr) (locally 981% 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 97 days. Have you received any prior offers? Is the seller open to a 32% 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 1962 — 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?