560 Terrace Ave

Moss Beach, CA 94038

$1,196,000D

3 bd · 2.5 ba · 1,520 sqft · Built 1978 · SingleFamily · Pending · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,349/mo
• Mortgage (P&I): −$6,272
• Tax + insurance: −$1,177
• HOA: −$0
• Vac / Maint / Mgmt: −$1,543
• Net cashflow: $-1,643/mo
• Annual: $-19,711/yr
• Cap rate: 4.64%
• Cash-on-cash: -5.89%
• DSCR: 0.74
• 1% rule: 0.61%
• Cash to close: $334,880

Investor read

• This is a 3-bed/2.5-bath single-family listed at $1.20M.
• At list price, monthly cash flow is $-2k ($-20k/yr) — negative.
• To cash-flow at today's rent, offer at most $906k (24.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $735k (38.6% below list).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $735k (38.6% below list) — sets the bar for 1% rule.
• In year one you build about $26k of equity ($8k loan paydown + $18k appreciation (1.5% local appreciation)).
• Location reads 69/100 on livability (#252 in CA) — a middle-class / working-renter tenant base. Strengths: crime A+, commute A+, employment A+; Watch: amenities F, cost of living F, health & safety F.
• Cabrillo Unified (town): math 34% / reading 48% proficiency, ranked #498 of 1,400 in CA (top 36%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Farallone View Elementary (164 students, 15% FRL); Manuel F. Cunha Intermediate (584 students, 41% FRL); Half Moon Bay High (1,024 students, 32% FRL).
• Market conditions: 19 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 1,019 units permitted in San Mateo County in 2024 (484 in 5+ unit buildings).
• San Mateo 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.
• Current owner paid $230k; list at $1.20M implies a 420% gain — meaningful room to come down on a strong offer.
• By year 3, paydown + projected appreciation supports a ~$68k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• Built in 1978 — 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 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?
• 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?
• 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.