630 W Foothill

Monrovia, CA 91016

$1,250,000D-

4 bd · 4.0 ba · 2,200 sqft · Built 1951 · MultiFamily · Active · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,957/mo
• Mortgage (P&I): −$6,555
• Tax + insurance: −$1,571
• HOA: −$0
• Vac / Maint / Mgmt: −$1,881
• Net cashflow: $-1,050/mo
• Annual: $-12,600/yr
• Cap rate: 5.28%
• Cash-on-cash: -3.60%
• DSCR: 0.84
• 1% rule: 0.72%
• Cash to close: $350,000

Investor read

• This is a 4 × 1-bed/1.0-bath units multifamily listed at $1.25M.
• At list price, monthly cash flow is $-1k ($-13k/yr) — negative. Per door: $-263/mo.
• To cash-flow at today's rent, offer at most $1.06M (14.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $896k (28.3% below list).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $896k (28.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $9k of loan paydown is wiped out by about $38k of value loss. Plan a longer hold.
• Location reads 52/100 on livability (#993 in CA) — a working-class tenant base; expect higher turnover. Strengths: employment A+, health & safety A-; Watch: schools C-, crime C-, amenities F.
• Monrovia Unified (suburban): math 39% / reading 48% proficiency, ranked #182 of 517 in CA (top 35%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1951 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.4%/yr); 71 active listings in the ZIP; 22 comparable units currently listed for rent nearby; rentals at typical pace (median 19d 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.
• 4 sale attempts since 6y 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 $800k; list at $1.25M implies a 56% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.3% vs local median 2.1% in Monrovia — 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 $8,957/mo this rent would consume 111% of the median local household income ($97k/yr) (locally 2134% 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?
• 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 1951 — 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.
• 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?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.