11273 Garden Hwy

Yuba City, CA 95991

$869,000C

12 bd · 7.5 ba · 5,621 sqft · Built 1965 · MultiFamily · Active · 718 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,257/mo
• Mortgage (P&I): −$4,557
• Tax + insurance: −$924
• HOA: −$0
• Vac / Maint / Mgmt: −$1,944
• Net cashflow: $1,832/mo
• Annual: $21,984/yr
• Cap rate: 9.00%
• Cash-on-cash: 9.65%
• DSCR: 1.43
• 1% rule: 1.07%
• Cash to close: $243,320

Investor read

• This is a 12-bed/7.5-bath multifamily listed at $869k.
• At list price, monthly cash flow is $2k ($22k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($9k rent vs $869k).
• It's been on market 718 days — a 12% lower offer ($765k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $765k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $26k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#111 in CA, #3,863 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, health & safety A+; Watch: crime D+, cost of living F.
• Yuba City Unified (urban): math 20% / reading 53% proficiency, ranked #263 of 517 in CA (top 51%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Gray Avenue Middle (688 students, 89% FRL); Yuba City High (math 19% / reading 54%, grade F, #602 of 1,170 statewide, top 52%, 1,822 students, 64% FRL) — zoned schools average 77% FRL vs 58% district-wide (19 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $125/mo.
• Market conditions: Rents rising (+1.8%/yr); 149 active listings in the ZIP; 73 units permitted in Sutter County in 2024 (0 in 5+ unit buildings).
• Sutter County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 9 sale attempts since 2y ago; this cycle's ask is 75465% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $345k; list at $869k implies a 152% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: in FEMA flood zone A (mandatory federal flood insurance); extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.0% vs local median 3.5% in Yuba City — 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 $9,257/mo this rent would consume 157% of the median local household income ($71k/yr) (locally 1674% 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 718 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1965 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?
• 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.