Updated Residential Income
New
For Sale
$499,500
38 Walnut Dr 38, Morgan Hill, CA 95037
Manufactured home with extensive upgrades, flexible bonus space, private outdoor areas, and access to a resident-owned 55+ community.
Property Size1,584 SF
Price / SF$315.34
Days on Market6
Property Features for 38 Walnut Dr 38
General Information
Standard status
Active
Size
1,584 SF
Total Parking Spaces
3
Property subtype
Commercial
Additional Details
HOA Fee
$383
Multifamily Units
1
Amenities
front porch
workshop/storage room
patio
pergola
storage shed
clubhouse
Building Details
Building Size
1,584 SF
Year Built
1995
Buildings
1
Stories
1
Construction
manufactured home
Listing Agency:
Heritage Realty Team
(408) 857-0119
Listed By:
Susan Fick
(408) 857-0119
Source:
Elliman
Added: Aug 5
Changed: Aug 8
Last Checked: Aug 9 at 10:30AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Heritage Realty Team
Investment Insights
Based on property information with market context.
This 1995 manufactured home provides approximately 1,584 square feet with two bedrooms, two baths, and a bonus room with a closet adjoining the primary suite. The open layout connects the living and dining areas, while improvements include remodeled bathrooms, a refreshed kitchen with stainless steel appliances, newer flooring, dual-pane windows, copper plumbing, earthquake bracing, and updated heating and air conditioning. A 2018 roof and brand-new water heater add to the recent capital improvements.
Outdoor features include a covered front porch, private backyard patio with pergola, Meyer lemon tree, newer fencing, and a storage shed. The 2-3 car carport includes an attached workshop or storage room. The home is located at 38 Walnut Dr 38 in Morgan Hill, within Woodland Estates, a resident-owned 55+ community, with the clubhouse and community amenities a short stroll away. Walk Score is 9, Bike Score is 26, and Transit Score is 28.
Outdoor features include a covered front porch, private backyard patio with pergola, Meyer lemon tree, newer fencing, and a storage shed. The 2-3 car carport includes an attached workshop or storage room. The home is located at 38 Walnut Dr 38 in Morgan Hill, within Woodland Estates, a resident-owned 55+ community, with the clubhouse and community amenities a short stroll away. Walk Score is 9, Bike Score is 26, and Transit Score is 28.
Key Highlights
- Approximately 1,584 sq. ft. with 2 bedrooms, 2 baths, and bonus room
- 2018 roof, brand‑new water heater, newer furnace and A/C
- Updated kitchen with stainless steel appliances and remodeled bathrooms
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$30,109
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.03%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$602,180
$602.2K
Cap Rate 7%
$430,129
$430.1K
Cap Rate 9%
$334,544
$334.5K
Market Conditions
NOI Build-Up for 1,584 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$57.0K $36.00/SF
− Vacancy
−$2.3K −$1.44/SF
EGI
$54.7K $34.56/SF
− OpEx
−$24.6K −$15.55/SF
NOI
$30.1K $19.01/SF
Area
Santa Clara County, CA
Vacancy
4.00%
Lease Rate
$36.00 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$602,180
Cap Rate 7%
$430,129
Cap Rate 9%
$334,544
Alternative Uses
Best Use
Apartment 5plus
$430.1K
$376.4K – $501.8K
NOI $30,109 @ 7.0% cap · market cap 6.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$956.3K
$836.8K – $1.12M
NOI $66,940 @ 7.0% cap · market cap 13.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
50
Businesses Nearby
Explore this area
Business Placement
Demographics for 95037, CA
53,126
Population
17,185
Households
3.1
Avg Household Size
41
Median Age
44%
College-Educated
90%
High-School Grad
120.1 sq mi
ZIP Area
442
Density / Sq Mi
$158,256
Median Household Income
$71,130
Median Earnings
$2,242
Median Rent
$1,152,400
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Manufactured home with extensive upgrades, flexible bonus space, private outdoor areas, and access to a resident-owned 55+ community.
Where is this residential income property located?
The property is located at 38 Walnut Dr 38 Morgan Hill, CA.
What is the asking price?
The asking price for this property is $499,500.
What are key features of this property?
This property features: Approximately 1,584 sq. ft. with 2 bedrooms, 2 baths, and bonus room; 2018 roof, brand‑new water heater, newer furnace and A/C; Updated kitchen with stainless steel appliances and remodeled bathrooms
