24 E School Ave #4

Porterville, CA 93257

$559,900F

28 bd · 16.0 ba · 2,500 sqft · Built 1915 · MultiFamily · Active · 184 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,310/mo
• Mortgage (P&I): −$2,936
• Tax + insurance: −$933
• HOA: −$0
• Vac / Maint / Mgmt: −$905
• Net cashflow: $-464/mo
• Annual: $-5,573/yr
• Cap rate: 5.30%
• Cash-on-cash: -3.56%
• DSCR: 0.84
• 1% rule: 0.77%
• Cash to close: $156,772

Investor read

• This is a 3×2bd/1ba + 1×1bd/1ba units multifamily listed at $560k. Condition is rated good.
• At list price, monthly cash flow is $-464 ($-6k/yr) — negative. Per door: $-116/mo.
• To cash-flow at today's rent, offer at most $493k (12.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $431k (23.0% below list).
• It's been on market 184 days — a 12% lower offer ($493k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $431k (23.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $17k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#561 in CA) — a middle-class / working-renter tenant base. Strengths: housing A, commute A-; Watch: crime C-, cost of living D+, amenities F.
• Porterville Unified (urban): math 18% / reading 50% proficiency, ranked #302 of 517 in CA (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 84% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Roche Elementary (319 students, 92% FRL); Bartlett Middle (430 students, 94% FRL); Granite Hills High (math 19% / reading 48%, grade F, #656 of 1,170 statewide, top 57%, 1,242 students, 92% FRL).
• Watch-outs: built in 1915 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.1%/yr); 325 active listings in the ZIP; 1,447 units permitted in Tulare County in 2024 (307 in 5+ unit buildings).
• Tulare County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts; this cycle's ask is 4% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Climate carrying-cost: severe wildfire risk; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.3% vs local median 2.7% in Porterville — 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 $4,310/mo this rent would consume 87% of the median local household income ($60k/yr) (locally 3028% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 184 days. Have you received any prior offers? Is the seller open to a 23% 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 1915 — 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?