6725 Perry Rd

Bell Gardens, CA 90201

$2,988,888D-

13 bd · 12.0 ba · 5,950 sqft · Built 1960 · MultiFamily · Active · 30 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $22,764/mo
• Mortgage (P&I): −$15,674
• Tax + insurance: −$2,494
• HOA: −$0
• Vac / Maint / Mgmt: −$4,780
• Net cashflow: $-185/mo
• Annual: $-2,216/yr
• Cap rate: 6.22%
• Cash-on-cash: -0.26%
• DSCR: 0.99
• 1% rule: 0.76%
• Cash to close: $836,889

Investor read

• This is a 11×1bd/1ba + 1×2bd/1ba units multifamily listed at $2.99M.
• At list price, monthly cash flow is $-185 ($-2k/yr) — negative. Per door: $-15/mo.
• To cash-flow at today's rent, offer at most $2.96M (1.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $2.28M (23.8% below list).
• It's been on market 30 days — a 2% lower offer ($2.94M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.28M (23.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $21k of loan paydown is wiped out by about $90k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#388 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+; Watch: crime C-, amenities D+, employment D+.
• Montebello Unified (suburban): math 17% / reading 32% proficiency, ranked #419 of 517 in CA (top 81%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 76% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 55 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.
• Current owner paid $508k; list at $2.99M implies a 489% gain — meaningful room to come down on a strong offer.
• 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 6.2% vs local median 4.0% in Bell Gardens — 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.
• At $22,764/mo this rent would consume 448% of the median local household income ($61k/yr) (locally 6155% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• 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?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.