10130 S Inglewood Ave

Lennox, CA 90304

$2,645,000B-

18 bd · 15.0 ba · 10,331 sqft · Built 1960 · MultiFamily · Active · 158 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $46,162/mo
• Mortgage (P&I): −$13,871
• Tax + insurance: −$2,997
• HOA: −$0
• Vac / Maint / Mgmt: −$9,694
• Net cashflow: $19,600/mo
• Annual: $235,205/yr
• Cap rate: 15.19%
• Cash-on-cash: 31.76%
• DSCR: 2.41
• 1% rule: 1.75%
• Cash to close: $740,600

Investor read

• This is a 15 × 19-bed/15.0-bath units multifamily listed at $2.65M.
• At list price, monthly cash flow is $20k ($235k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($46k rent vs $2.65M).
• It's been on market 158 days — a 12% lower offer ($2.33M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.33M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $18k of loan paydown is wiped out by about $79k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#580 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+, housing B; Watch: schools D+, employment D+, amenities D.
• Lennox (suburban): math 36% / reading 44% proficiency, ranked #771 of 1,400 in CA (top 55%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 83% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents flat; 24 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 $550k; list at $2.65M implies a 381% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 0.3% rent growth), your $741k cash investment doubles in ~5 years — after that, you're playing with house money.
• 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.
• At $46,162/mo this rent would consume 864% of the median local household income ($64k/yr) (locally 1761% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 158 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?
• Built in 1960 — 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?