697 Hamline St

San Jose, CA 95110

$725,000B+

9 bd · 9.0 ba · 1,500 sqft · Built 1959 · MultiFamily · Active · 31 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $12,550/mo
• Mortgage (P&I): −$3,802
• Tax + insurance: −$1,076
• HOA: −$0
• Vac / Maint / Mgmt: −$2,636
• Net cashflow: $5,036/mo
• Annual: $60,433/yr
• Cap rate: 14.74%
• Cash-on-cash: 30.17%
• DSCR: 2.34
• 1% rule: 1.73%
• Cash to close: $203,000

Investor read

• This is a 3 × 3-bed/3.0-bath units multifamily listed at $725k. Condition is rated fair.
• At list price, monthly cash flow is $5k ($60k/yr) — positive. Per door: $2k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($13k rent vs $725k).
• It's been on market 31 days — a 3% lower offer ($703k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $703k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#68 in CA, #2,559 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• San Jose Unified (urban): math 39% / reading 52% proficiency, ranked #149 of 517 in CA (top 29%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Walter L. Bachrodt Elementary (math 18% / reading 30%, grade F, #1,150 of 1,571 statewide, top 74%, 451 students, 63% FRL); Herbert Hoover Middle (math 20% / reading 38%, grade F, #224 of 498 statewide, top 46%, 971 students, 61% FRL); Abraham Lincoln High (math 31% / reading 54%, grade F, #466 of 1,170 statewide, top 40%, 1,693 students, 54% FRL) — zoned schools average 59% FRL vs 38% district-wide (21 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 32% at this address vs 46% district-wide (-14 pts) — the specific schools serving this property underperform the San Jose Unified average; the district grade overstates school quality for this exact location.
• Watch-outs: flood insurance adds $68/mo; built in 1959 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.7%/yr); 95 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.
• 5 sale attempts since 22y ago; this cycle's ask has dropped $73k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $399k; list at $725k implies a 82% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 4.7% rent growth), your $203k cash investment doubles in ~4 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk; extreme-heat days projected 7→14/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 31 days. Have you received any prior offers? Is the seller open to a 3% 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1959 — 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is F 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?

Repairs flagged (vision-AI assessment)

• Major: Cluttered areas — The property is cluttered with various items and furniture, which detracts from its appearance and usability.
• Major: Yard and driveway cleanup — The yard and driveway are cluttered with various items and furniture, which detracts from its appearance and usability.
• Major: Kitchen organization — The kitchen is cluttered with appliances and items on countertops and shelves, which detracts from its functionality and appearance.
• Major: Bathroom organization — The bathroom is cluttered with toiletries and items on countertops and shelves, which detracts from its functionality and appearance.