900 Southampton Rd #140

Benicia, CA 94510

$260,000D

2 bd · 1.0 ba · 853 sqft · Built 1977 · Condo · Active · 153 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,521/mo
• Mortgage (P&I): −$1,363
• Tax + insurance: −$329
• HOA: −$670
• Vac / Maint / Mgmt: −$529
• Net cashflow: $-371/mo
• Annual: $-4,447/yr
• Cap rate: 4.58%
• Cash-on-cash: -6.11%
• DSCR: 0.73
• 1% rule: 0.97%
• Cash to close: $72,800

Investor read

• This is a 2-bed/1.0-bath condo listed at $260k.
• At list price, monthly cash flow is $-371 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $195k (25.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $252k (3.0% below list).
• It's been on market 153 days — a 12% lower offer ($229k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $195k (25.2% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#269 in CA) — a middle-class / working-renter tenant base. Strengths: employment A+, crime A, housing A-; Watch: amenities F, cost of living F, health & safety F.
• Benicia Unified (suburban): math 75% / reading 75% proficiency, ranked #35 of 517 in CA (top 7%) — strong family-tenant draw, lease renewals of 3-5y typical; only 17% free/reduced lunch — higher-income household profile.
• Zoned schools: Joe Henderson Elementary (512 students, 21% FRL); Benicia Middle (986 students, 28% FRL); Benicia High (math 75% / reading 75%, grade A-, #66 of 1,170 statewide, top 6%, 1,432 students, 24% FRL).
• Watch-outs: HOA is 27% of rent.
• Market conditions: Rents soft (-0.8%/yr); 119 active listings in the ZIP; 12 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 58% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 1,472 units permitted in Solano County in 2024 (131 in 5+ unit buildings).
• Solano County population projected at +15% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 30y ago; this cycle's ask has dropped $39k (13%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $79k; list at $260k implies a 229% gain — meaningful room to come down on a strong offer.
• Cap rate 4.6% vs local median 2.6% in Benicia — 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.

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 153 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• Built in 1977 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?