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Covelo, CA 95428

$69,000B-

1 bd · 1.0 ba · 800 sqft · Built — · SingleFamily · Active · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $896/mo
• Mortgage (P&I): −$362
• Tax + insurance: −$115
• HOA: −$0
• Vac / Maint / Mgmt: −$188
• Net cashflow: $231/mo
• Annual: $2,771/yr
• Cap rate: 10.31%
• Cash-on-cash: 14.34%
• DSCR: 1.64
• 1% rule: 1.30%
• Cash to close: $19,320

Investor read

• This is a 1-bed/1.0-bath single-family listed at $69k.
• At list price, monthly cash flow is $231 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($896 rent vs $69k).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $504 of equity ($477 loan paydown + $27 appreciation (0.0% local appreciation)).
• Location reads 56/100 on livability (#806 in CA) — a working-class tenant base; expect higher turnover. Strengths: crime B; Watch: housing D+, health & safety D+, schools F.
• Round Valley Unified (rural): math 11% / reading 26% proficiency, ranked #1,281 of 1,400 in CA (top 92%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 93% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 52 active listings in the ZIP; 8 units permitted in Mendocino County in 2024 (0 in 5+ unit buildings).
• Mendocino County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 4y 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.
• At projected returns (0.0% appreciation + 3.0% rent growth), your $19k cash investment doubles in ~6 years — after that, you're playing with house money.
• Climate carrying-cost: severe wildfire risk; extreme-heat days projected 8→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.