1631 E Saunders

Compton, CA 90221

$849,000D-

28 bd · 20.0 ba · 2,653 sqft · Built 1953 · MultiFamily · Active · 157 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,019/mo
• Mortgage (P&I): −$4,452
• Tax + insurance: −$1,415
• HOA: −$0
• Vac / Maint / Mgmt: −$1,684
• Net cashflow: $468/mo
• Annual: $5,613/yr
• Cap rate: 6.95%
• Cash-on-cash: 2.36%
• DSCR: 1.11
• 1% rule: 0.94%
• Cash to close: $237,720

Investor read

• This is a 2×1bd/1ba + 1×2bd/1ba + 1×3bd/2ba units multifamily listed at $849k. Condition is rated poor.
• At list price, monthly cash flow is $468 ($6k/yr) — positive. Per door: $117/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $802k (5.5% below list).
• It's been on market 157 days — a 12% lower offer ($747k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $747k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $25k of value loss. Plan a longer hold.
• Location reads 56/100 on livability (#803 in CA) — a working-class tenant base; expect higher turnover. Strengths: commute A+, housing B; Watch: schools D, crime F, amenities D-.
• Compton Unified (suburban): math 31% / reading 38% proficiency, ranked #910 of 1,400 in CA (top 65%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 78% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1953 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 40 active listings in the ZIP; 19,697 units permitted in Los Angeles County in 2024 (9,426 in 5+ unit buildings).
• Los Angeles County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 17 sale attempts since 26y ago; this cycle's ask has dropped $50k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $575k; 48% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.0% vs local median 3.0% in Compton — 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.

Questions for listing agent

• It's been on market 157 days. Have you received any prior offers? Is the seller open to a 12% 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1953 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?

Repairs flagged (vision-AI assessment)

• Major: exterior paint — Peeling paint
• Major: exterior siding — Visible wear
• Major: interior walls — No visible interior walls
• Major: bathrooms — No visible bathrooms
• Major: kitchen — No visible kitchen
• Major: roof — No visible damage