8396 Solfrid Way

Elk Grove, CA 95757

$557,388D

3 bd · 2.5 ba · 1,730 sqft · Built 2026 · Land · Pending · 45 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,244/mo
• Mortgage (P&I): −$2,923
• Tax + insurance: −$744
• HOA: −$125
• Vac / Maint / Mgmt: −$681
• Net cashflow: $-1,230/mo
• Annual: $-14,756/yr
• Cap rate: 3.65%
• Cash-on-cash: -9.45%
• DSCR: 0.58
• 1% rule: 0.58%
• Cash to close: $156,069

Investor read

• This is a 3-bed/2.5-bath land listed at $557k.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative.
• To cash-flow at today's rent, offer at most $340k (39.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $324k (41.8% below list).
• It's been on market 45 days — a 3% lower offer ($541k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $324k (41.8% below list) — sets the bar for 1% rule.
• In year one you build about $60k of equity ($4k loan paydown + $56k appreciation (10.0% local appreciation)).
• Location reads 71/100 on livability (#212 in CA) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime B+; Watch: commute F, cost of living F.
• Elk Grove Unified (suburban): math 40% / reading 51% proficiency, ranked #165 of 517 in CA (top 32%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising fast (+4.5%/yr); 295 active listings in the ZIP; 29 comparable units currently listed for rent nearby; rentals at typical pace (median 20d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 6,825 units permitted in Sacramento County in 2024 (1,752 in 5+ unit buildings).
• Sacramento County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 2, paydown + projected appreciation supports a ~$96k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 3.6% vs local median 2.8% in Elk Grove — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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?
• It's been on market 45 days. Have you received any prior offers? Is the seller open to a 42% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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.