10863 Highway 99

Live Oak, CA 95953

$968,000C

None bd · 648.0 ba · 2,579 sqft · Built 1950 · MultiFamily · Active · 23 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,735/mo
• Mortgage (P&I): −$5,076
• Tax + insurance: −$1,613
• HOA: −$0
• Vac / Maint / Mgmt: −$2,254
• Net cashflow: $1,791/mo
• Annual: $21,492/yr
• Cap rate: 8.51%
• Cash-on-cash: 7.93%
• DSCR: 1.35
• 1% rule: 1.11%
• Cash to close: $271,040

Investor read

• This is a 8 × ?-bed/1-bath units multifamily listed at $968k. Condition is rated fair.
• At list price, monthly cash flow is $2k ($21k/yr) — positive. Per door: $224/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($11k rent vs $968k).
• It's been on market 23 days — a 2% lower offer ($953k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $953k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $29k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#197 in CA) — a middle-class / working-renter tenant base. Strengths: health & safety A+, amenities A, commute A; Watch: employment C-, crime F, cost of living F.
• Live Oak Unified (town): math 39% / reading 52% proficiency, ranked #569 of 1,400 in CA (top 41%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 69% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Luther Elementary (784 students, 76% FRL); Live Oak Middle (389 students, 75% FRL); Live Oak High (math 22% / reading 57%, grade F, #532 of 1,170 statewide, top 48%, 595 students, 68% FRL) — zoned schools at 73% FRL track the district average.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 43 active listings in the ZIP; 73 units permitted in Sutter County in 2024 (0 in 5+ unit buildings).
• Sutter County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 2y ago 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 $750k; 29% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 8.5% vs local median 2.8% in Live Oak — 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

• 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 1950 — 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.
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: landscaping — overgrown and uneven
• Minor: exterior siding — slight wear