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859 Barron Ave Palo Alto, CA 94306

3 Beds 2 Baths 1,398 sqft Built 1956

INVESTimate

$1,998,000

List Price

$5,490

$5,240 - $5,740

Rent Est.

$2,169,029  ( +8.56%)   1 YR EST. FORECAST

PROPERTY INFO

August 21, 2020 RECENTLY ADDED
FACTS
  • Built In 1956
  • Price/Sqft : $1,429.18
  • 6 Days on Market
  • MLS # : ML81807171
  • Updated Date : 08/21/2020 at 11:45
CONSTRUCTION
  • Beds : 3
  • Floor Size : 1,398 sqft
  • Baths : 2 full
Listing Agent

Sereno Group

Listing Agent's Description

Appealing single-story home on a corner lot with mature trees and surrounding lawns beyond brick and painted wood front fencing. Beautiful, original hardwood flooring with log-cabin-style borders in the living areas. French doors open to the living room; gracefully arched openings provide access to the formal dining room. Rheostat controlled can lighting in both the living and dining rooms. Kitchen has natural wood cabinets, tile countertops, stainless-steel appliances, and informal dining space. All three bedrooms have original hardwood floors. New doors and hardware throughout. Freshly painted interior, newer furnace & AC, roof, hot water recirculating pump. Pretty yard with birch, ash and maple trees, roses, jasmine and more. Situated in a lovely, well-established neighborhood, top rated Gunn High, convenient to shops and restaurants.

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MARKET HIGHLIGHTS

  • San Jose metro employment growth has been at 2.2% in 2018 and predicted to grow at 1.9% in 2019 (USMayors.org, 2018)
  • San Jose metro contributes to 9% of California state's economy i.e. Gross State Product (USMayors.org, 2018)
  • Palo Alto, Redwood City, Mountain View and San Mateo together attracted around $11 billion in venture capital funding in 2019 making Silicon Valley still attractive to technology investments (Crunchbase News, 2020)
  • San Jose metro has 67.6% labor force participation rate higher than the national rate 62.8% (USMayors.org, 2018)
  • San Jose metro's economy has been worth $282.2 billion in Gross Metro Product (GMP) in 2018 and is projected to grow to $298.6 billion in 2019. GMP measures the productivity of the metro. (USMayors.org, 2018)

PRICE & RENT TRENDS

Neighborhood: Barron Park

NeighborhoodNIR Market*CityMarket2010Year20002019600k800k1000k1200k1400k1600k1800k2000k2200k2400k2600k2800k3000kPrice in $411k3114k

* NIR Market: Aggregated price or rent trend of all neighborhoods with same NIR

Neighborhood: Barron Park

NeighborhoodNIR Market*CityMarket2010Year20002019 Q22000250030003500400045005000550060006500Rent in $19076545

* NIR Market: Aggregated price or rent trend of all neighborhoods with same NIR

SCHOOLS

NAME EDUCATIONAL LEVEL SCHOOL TYPE # OF STUDENTS # OF TEACHERS GREATSCHOOLS RATING
Barron Park Elementary School Primary Regular 338 18 5
Terman Middle School Middle Regular 722 47 8
Henry M. Gunn High School High Regular 1,897 109 10

Barron Park Elementary School

  • Education Level: Primary
  • # of students: 338
  • # of teachers: 18
5
GreatSchools Rating

Terman Middle School

  • Education Level: Middle
  • # of students: 722
  • # of teachers: 47
8
GreatSchools Rating

Henry M. Gunn High School

  • Education Level: High
  • # of students: 1,897
  • # of teachers: 109
10
GreatSchools Rating
 

$1,798,200$2,197,800$1,998,000

PURCHASE PRICE

$4,941$6,039$5,490

RENT

DOWN PAYMENT
FINANCING

PROJECTED ACCUMULATED WEALTH

30 YEAR PROJECTION

  • Cash Flow
  • Appreciation
  • Principal
11530$0.0$1.0M$2.0M$3.0M$4.0M$5.0M$6.0M

PROJECTED ANNUAL CASH FLOW

11530-$70k-$60k-$50k-$40k-$30k-$20k-$10k$0.0

PROJECTED PROPERTY VALUE

30 YEAR PROJECTION

  • Appreciation
  • Principal
  • Loan Balance
11530$0.0$1.0M$2.0M$3.0M$4.0M$5.0M$6.0M

FINANCIALS

PROJECTED BASIC MONTHLY INCOME STATEMENT

INCOME Rent $5,490
EXPENSES Loan Payment -$7,372
Property Tax -$2,049
Property Insurance -$61
Property Management Fees -$214
CASH FLOW
-$4,205

This is the estimated cash flow generated during a typical maintenance-free month. It is recommended that investors set aside 13% of earned rent to cover both maintenance and periods of vacancy.

$1,998,000

PROJECTED PRICE

$5,490

PROJECTED RENT

0.27%

PROJECTED RENT / PRICE RATIO

ASSUMPTIONS

Expense Inflation 2.50%
Rental Growth Year (1-5) 5.00%
Appreciation Year (1-5) 8.56%
Maintenance Year (1-5) 8.00%
Vacancy 5.40%
Length of Stay Years 2

TOTAL CASH OUT OF POCKET

TOTAL OUT OFPOCKET$535,220

INVESTMENT

$535,220

Down Payment
$499,500
Rehab Estimate
$5,750
Closing Costs
$29,970

LOAN DETAILS

25%

DOWN PAYMENT

HOMEUNION RECOMMENDS:

A 100% down payment or higher enables the proceeds from the asset to cover all costs.

$7,372

MONTHLY LOAN PAYMENT

30 yr
Term
4.25%
Interest
25.00%
Down Payment
Term 30 Years
Interest 4.25%
Down Payment $499,500
Loan Amount $1,498,500
See What Happens When You Reinvest Cash Flow

-0.08

YEARS SAVED

-$79

INTEREST SAVED

CASH FLOW REINVESTMENT

The time & interest saved by applying each month's positive cash flow towards loan principal pay down.

  • $5,490

    LIST RENT
  • $3.93

    LIST RENT PER SQFT
  • $5,907

    COMP ESTIMATED VALUE
  • $4.23

    COMP AVG. RENT PER SQFT
Comps Range
$5,490
1$5,4902$5,5003$6,1504$6,1505$7,000
$7,000
RENT COMPS ANALYSIS
  • 859 Barron Ave Palo Alto, 1
    • 3 beds 2 baths ∙ 1,398 Sqft ∙ Built 1956 3 beds 2 baths ∙ 1,398 Sqft ∙ Built 1956
    property image
    • Rent
    • Rent Per SQFT
    •  
    • $5,490
    • $3.93
    •  
  • 2131 Amherst St Palo Alto, 2
    • 4 beds 3 baths ∙ 1,542 Sqft ∙ Built 1939 4 beds 3 baths ∙ 1,542 Sqft ∙ Built 1939
    property image
    LEASED 04/18/19
    • Rent
    • Rent Per SQFT
    •  
    • $5,500
    • $3.57
    •  
  • 673 Georgia Ave Palo Alto, 3
    • 3 beds 2 baths ∙ 1,387 Sqft ∙ Built 1954 3 beds 2 baths ∙ 1,387 Sqft ∙ Built 1954
    property image
    LEASED 05/03/19
    • Rent
    • Rent Per SQFT
    •  
    • $6,150
    • $4.43
    •  
  • 4289 Miranda Ave Palo Alto, 4
    • 3 beds 2 baths ∙ 1,364 Sqft ∙ Built 1956 3 beds 2 baths ∙ 1,364 Sqft ∙ Built 1956
    property image
    LEASED 06/01/20
    • Rent
    • Rent Per SQFT
    •  
    • $6,150
    • $4.51
    •  
  • 341 Edlee Ave Palo Alto, 5
    • 3 beds 2 baths ∙ 1,596 Sqft ∙ Built 1951 3 beds 2 baths ∙ 1,596 Sqft ∙ Built 1951
    property image
    LEASED 03/04/20
    • Rent
    • Rent Per SQFT
    •  
    • $7,000
    • $4.39
    •  
PROPERTY LISTING DETAILS
Mark Barber
Sereno Group
BESbswy