3835 W 104th St

Inglewood, CA 90303

$6,375,000C+

39 bd · 42.0 ba · 23,555 sqft · Built 1961 · MultiFamily · Active · 68 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $93,088/mo
• Mortgage (P&I): −$33,431
• Tax + insurance: −$7,007
• HOA: −$0
• Vac / Maint / Mgmt: −$19,548
• Net cashflow: $33,102/mo
• Annual: $397,220/yr
• Cap rate: 12.52%
• Cash-on-cash: 22.25%
• DSCR: 1.99
• 1% rule: 1.46%
• Cash to close: $1,785,000

Investor read

• This is a 28 × 39-bed/42.0-bath units multifamily listed at $6.38M.
• At list price, monthly cash flow is $33k ($397k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($93k rent vs $6.38M).
• It's been on market 68 days — a 6% lower offer ($5.99M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $5.99M (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $44k of loan paydown is wiped out by about $191k of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#431 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+, housing B; Watch: health & safety C-, schools D, crime F.
• Inglewood Unified (suburban): math 14% / reading 27% proficiency, ranked #457 of 517 in CA (top 88%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 74% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising (+2.6%/yr); 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.
• 7 sale attempts since 22y ago 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 $2.45M; list at $6.38M implies a 160% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 2.6% rent growth), your $1.78M cash investment doubles in ~6 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.
• Cap rate 12.5% vs local median 2.6% in Inglewood — 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 $93,088/mo this rent would consume 1534% of the median local household income ($73k/yr) (locally 1236% 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 68 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 1961 — 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?