8317 Whittier

Pico Rivera, CA 90660

$949,999C+

12 bd · 20.0 ba · 3,992 sqft · Built 1927 · MultiFamily · Active · 72 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,253/mo
• Mortgage (P&I): −$4,982
• Tax + insurance: −$1,583
• HOA: −$0
• Vac / Maint / Mgmt: −$2,153
• Net cashflow: $1,535/mo
• Annual: $18,416/yr
• Cap rate: 8.23%
• Cash-on-cash: 6.92%
• DSCR: 1.31
• 1% rule: 1.08%
• Cash to close: $266,000

Investor read

• This is a 3×3bd/2ba + 1×1bd/1ba units multifamily listed at $950k.
• At list price, monthly cash flow is $2k ($18k/yr) — positive. Per door: $384/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($10k rent vs $950k).
• It's been on market 72 days — a 6% lower offer ($893k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $893k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $28k of value loss. Plan a longer hold.
• Location reads 61/100 on livability (#511 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+, employment A; Watch: schools D+, crime D-, amenities 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.
• Watch-outs: built in 1927 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.1%/yr); 70 active listings in the ZIP; 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.
• 13 sale attempts since 9y ago; this cycle's ask has dropped $50k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $500k; list at $950k implies a 90% gain — meaningful room to come down on a strong offer.
• Cap rate 8.2% vs local median 2.7% in Pico Rivera — 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 $10,253/mo this rent would consume 139% of the median local household income ($88k/yr) (locally 1257% 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 72 days. Have you received any prior offers? Is the seller open to a 6% 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 1927 — 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 D 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?