712 Santa Clara Ave

Alameda, CA 94501

$1,300,000B

6 bd · 6.0 ba · 4,674 sqft · Built 1953 · MultiFamily · Active · 66 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $17,163/mo
• Mortgage (P&I): −$6,817
• Tax + insurance: −$1,315
• HOA: −$0
• Vac / Maint / Mgmt: −$3,604
• Net cashflow: $5,426/mo
• Annual: $65,113/yr
• Cap rate: 11.30%
• Cash-on-cash: 17.89%
• DSCR: 1.80
• 1% rule: 1.32%
• Cash to close: $364,000

Investor read

• This is a 6 × 2-bed/1-bath units multifamily listed at $1.30M.
• At list price, monthly cash flow is $5k ($65k/yr) — positive. Per door: $904/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($17k rent vs $1.30M).
• It's been on market 66 days — a 6% lower offer ($1.22M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.22M (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $9k of loan paydown is wiped out by about $39k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#281 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+, employment A+, health & safety B+; Watch: crime F, amenities F, cost of living F.
• Alameda Unified (suburban): math 59% / reading 70% proficiency, ranked #149 of 1,400 in CA (top 11%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: William G. Paden Elementary (330 students, 41% FRL); Will C. Wood Middle (610 students, 55% FRL) — zoned schools average 48% FRL vs 25% district-wide (23 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1953 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.5%/yr); 177 active listings in the ZIP; high-income renter base; 1,742 units permitted in Alameda County in 2024 (856 in 5+ unit buildings).
• Alameda County population projected at +34% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.5% rent growth), your $364k cash investment doubles in ~7 years — after that, you're playing with house money.
• Climate carrying-cost: moderate flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 11.3% vs local median 1.7% in Alameda — 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 $17,163/mo this rent would consume 161% of the median local household income ($128k/yr) (locally 3146% 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 66 days. Have you received any prior offers? Is the seller open to a 6% 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 1953 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?
• 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?