149 /151 Diggles St #1

Etna, CA 96027

$265,000D

6 bd · 2.0 ba · 1,250 sqft · Built — · MultiFamily · Pending · 99 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,374/mo
• Mortgage (P&I): −$1,390
• Tax + insurance: −$442
• HOA: −$0
• Vac / Maint / Mgmt: −$499
• Net cashflow: $44/mo
• Annual: $529/yr
• Cap rate: 6.49%
• Cash-on-cash: 0.71%
• DSCR: 1.03
• 1% rule: 0.90%
• Cash to close: $74,200

Investor read

• This is a 2 × 3-bed/1.0-bath units multifamily listed at $265k.
• At list price, monthly cash flow is $44 ($529/yr) — positive. Per door: $22/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 $237k (10.4% below list).
• It's been on market 99 days — a 9% lower offer ($241k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $237k (10.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 62/100 on livability (#479 in CA) — a middle-class / working-renter tenant base. Strengths: housing A+; Watch: employment D, crime D-, amenities F.
• Scott Valley Unified (rural): math 35% / reading 48% proficiency, ranked #228 of 517 in CA (top 44%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Fort Jones Elementary (math 47% / reading 52%, grade D, #410 of 1,571 statewide, top 28%, 144 students, 47% FRL); Scott Valley Junior High (math 42% / reading 52%, grade D+, #117 of 498 statewide, top 24%, 170 students, 56% FRL); Etna Union High (math 34% / reading 54%, grade F, #434 of 1,170 statewide, top 39%, 180 students, 63% FRL) — zoned schools at 56% FRL track the district average.
• Market conditions: 20 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.
• 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.
• Climate carrying-cost: severe wildfire risk; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 99 days. Have you received any prior offers? Is the seller open to a 10% 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?
• 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 B-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?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?