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Masoud Arouni
  • Investor
  • Pleasanton, CA
50
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117
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When market data closes a deal neither side could close alone

Masoud Arouni
  • Investor
  • Pleasanton, CA
Posted

Recent duplex in Pleasant Hill CA 94523. Listed at $1,079,000, two price cuts, still sitting. Both sides stuck.

I ran the market and deal analysis. Here's what the data showed:

This ZIP 94523 is a stable landlord's market: 4.3% local vacancy against a national average of 7.2%, median gross rent $2,400/m & unit, cap rate range 5.8-6.8%, and rent growth running around 5% annually in that corridor. The market wasn't the problem.

The problem was entry price. At $1,079,000 with $5,700/month combined rent that's a 0.53% rent-to-price ratio. At today's rates the cash flow math simply didn't work for any investor doing serious underwriting.

The analysis identified the price point where cash flow, vacancy stress testing, and a rent trajectory that reaches $6,200/month in two years and nearly $7,300 in five all aligned into something both sides could stand behind. Sellers saw a data-backed framework, not just buyer pressure. Buyers had something they could defend.

Deal got done.

Numbers don't negotiate, they clarify.

  • Masoud Arouni