3828 Goldwyn Ter

Los Angeles, CA 90232

$858,995D

2 bd · 2.0 ba · 1,080 sqft · Built 1923 · MultiFamily · Active · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,456/mo
• Mortgage (P&I): −$4,505
• Tax + insurance: −$580
• HOA: −$0
• Vac / Maint / Mgmt: −$1,146
• Net cashflow: $-774/mo
• Annual: $-9,290/yr
• Cap rate: 5.21%
• Cash-on-cash: -3.86%
• DSCR: 0.83
• 1% rule: 0.64%
• Cash to close: $240,519

Investor read

• This is a 2 × 1-bed/1.0-bath units multifamily listed at $859k.
• At list price, monthly cash flow is $-774 ($-9k/yr) — negative. Per door: $-387/mo.
• To cash-flow at today's rent, offer at most $722k (15.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $546k (36.5% below list).
• It's been on market 28 days — a 2% lower offer ($846k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $546k (36.5% below list) — sets the bar for 1% rule.
• In year one you build about $26k of equity ($6k loan paydown + $20k appreciation (2.3% local appreciation)).
• Location reads 68/100 on livability (#273 in CA) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment B; Watch: health & safety C-, crime F, cost of living F.
• Los Angeles Unified (urban): math 29% / reading 54% proficiency, ranked #223 of 517 in CA (top 43%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 67% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Palms Elementary (250 students, 75% FRL); Palms Middle (1,244 students, 66% FRL); Alexander Hamilton Senior High (math 31% / reading 65%, grade D, #380 of 1,170 statewide, top 33%, 2,259 students, 74% FRL) — zoned schools at 72% FRL track the district average.
• Watch-outs: built in 1923 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-1.6%/yr); 30 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 17d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 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.
• 4 sale attempts since 7y ago; this cycle's ask has dropped $191k (18%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $685k; 25% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 3, paydown + projected appreciation supports a ~$66k 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 5.2% vs local median 2.1% in Los Angeles — 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.

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 1923 — 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 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?
• 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?