Factor in financing to see your actual return on invested capital in Clearlake.
$
$76,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.08%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$85,400
$76,250 down + $9,150 closing
Monthly Mortgage
$1,491
on $229K loan
Monthly Cash Flow
$-575
after all expenses
Annual Cash Flow
$-6,903
before taxes
Cash Flow Breakdown
Monthly Rent$1,580
Less Expenses−$664
Less Mortgage−$1,491
Monthly Cash Flow$-575
Is Clearlake a Good Place to Invest in Rental Property?
Clearlake, CA has a population of 50,000 and has been growing at 0.8% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $305,000 paired with median rents of $1,580/mo produces an estimated cap rate of 4.34%.
Property taxes at 0.75% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.2% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 5.1x, homes cost about 5.1 times the local median income of $60,018. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.8% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Clearlake presents moderate opportunities. Cap rates near 4.34% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
Sponsored
Get AI-Powered Property Insights
Homesage.ai analyzes 140 million properties with AI — spot hidden deals, assess property condition, and find investment opportunities. Free to try.