360 S Euclid #122

Pasadena, CA 91101

$452,000D

2 bd · 1.0 ba · 772 sqft · Built 1972 · Condo · Active · 48 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,060/mo
• Mortgage (P&I): −$2,370
• Tax + insurance: −$360
• HOA: −$525
• Vac / Maint / Mgmt: −$643
• Net cashflow: $-838/mo
• Annual: $-10,058/yr
• Cap rate: 4.07%
• Cash-on-cash: -7.95%
• DSCR: 0.65
• 1% rule: 0.68%
• Cash to close: $126,560

Investor read

• This is a 2-bed/1.0-bath condo listed at $452k.
• At list price, monthly cash flow is $-838 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $304k (32.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $306k (32.3% below list).
• It's been on market 48 days — a 3% lower offer ($438k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $304k (32.8% below list) — sets the bar for cash-flow.
• In year one you build about $8k of equity ($3k loan paydown + $5k appreciation (1.1% local appreciation)).
• Location reads 72/100 on livability (#181 in CA) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: health & safety D+, crime F, cost of living F.
• Pasadena Unified (urban): math 42% / reading 60% proficiency, ranked #123 of 517 in CA (top 24%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Mckinley (648 students, 83% FRL) — zoned schools average 83% FRL vs 55% district-wide (27 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents flat; 83 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 20d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 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.
• 5 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $98k; list at $452k implies a 361% gain — meaningful room to come down on a strong offer.
• By year 5, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• 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 4.1% vs local median 1.5% in Pasadena — 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.
• This rent runs 42% of the median local income ($88k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• It's been on market 48 days. Have you received any prior offers? Is the seller open to a 33% concession, seller financing, or rate buy-down credit?
• Built in 1972 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?