215 Charles St

Sunnyvale, CA 94086

$3,980,000C

18 bd · 9.0 ba · 5,989 sqft · Built 1971 · MultiFamily · Active · 45 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $34,965/mo
• Mortgage (P&I): −$20,872
• Tax + insurance: −$2,935
• HOA: −$0
• Vac / Maint / Mgmt: −$7,343
• Net cashflow: $3,816/mo
• Annual: $45,795/yr
• Cap rate: 7.44%
• Cash-on-cash: 4.11%
• DSCR: 1.18
• 1% rule: 0.88%
• Cash to close: $1,114,400

Investor read

• This is a 9 × 2-bed/1.0-bath units multifamily listed at $3.98M.
• At list price, monthly cash flow is $4k ($46k/yr) — positive. Per door: $424/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 $3.50M (12.1% below list).
• It's been on market 45 days — a 3% lower offer ($3.86M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $3.50M (12.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-2.9%/yr); year-one equity from $28k of loan paydown is wiped out by about $117k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#37 in CA, #1,258 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: cost of living F.
• Fremont Union High (urban): math 87% / reading 91% proficiency, ranked #6 of 517 in CA (top 1%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Homestead High (math 87% / reading 92%, grade A+, #14 of 1,170 statewide, top 1%, 2,311 students, 12% FRL).
• Market conditions: Rents rising fast (+5.0%/yr); 93 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 7.4% vs local median 1.2% in Sunnyvale — 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 $34,965/mo this rent would consume 237% of the median local household income ($177k/yr) (locally 2421% 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 45 days. Have you received any prior offers? Is the seller open to a 12% 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 1971 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.