216 W Tujunga Unit A

Burbank, CA 91502

$599,000D-

2 bd · 2.0 ba · 1,402 sqft · Built 1980 · Condo · Active · 34 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,163/mo
• Mortgage (P&I): −$3,141
• Tax + insurance: −$485
• HOA: −$335
• Vac / Maint / Mgmt: −$664
• Net cashflow: $-1,462/mo
• Annual: $-17,545/yr
• Cap rate: 3.36%
• Cash-on-cash: -10.46%
• DSCR: 0.53
• 1% rule: 0.53%
• Cash to close: $167,720

Investor read

• This is a 2-bed/2.0-bath condo listed at $599k.
• At list price, monthly cash flow is $-1k ($-18k/yr) — negative.
• To cash-flow at today's rent, offer at most $341k (43.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $316k (47.2% below list).
• It's been on market 34 days — a 3% lower offer ($581k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $316k (47.2% below list) — sets the bar for 1% rule.
• In year one you build about $16k of equity ($4k loan paydown + $11k appreciation (1.9% local appreciation)).
• Location reads 73/100 on livability (#174 in CA) — a middle-class / working-renter tenant base. Strengths: amenities A+, employment A, commute A-; Watch: health & safety C-, crime F, cost of living F.
• Burbank Unified (urban): math 43% / reading 60% proficiency, ranked #128 of 517 in CA (top 25%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents rising (+2.0%/yr); 8 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); 42% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 6 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 $100k; list at $599k implies a 500% gain — meaningful room to come down on a strong offer.
• By year 3, paydown + projected appreciation supports a ~$39k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate flood risk; extreme-heat days projected 8→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.4% vs local median 1.8% in Burbank — 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 $3,163/mo this rent would consume 72% of the median local household income ($52k/yr) (locally 1665% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 34 days. Have you received any prior offers? Is the seller open to a 47% concession, seller financing, or rate buy-down credit?
• 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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?