7442 Vineland Ave

Los Angeles, CA 91352

$6,395,000B-

18 bd · 23.0 ba · 12,534 sqft · Built 1964 · MultiFamily · Active · 101 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $91,086/mo
• Mortgage (P&I): −$33,536
• Tax + insurance: −$5,441
• HOA: −$0
• Vac / Maint / Mgmt: −$19,128
• Net cashflow: $32,981/mo
• Annual: $395,776/yr
• Cap rate: 12.48%
• Cash-on-cash: 22.10%
• DSCR: 1.98
• 1% rule: 1.42%
• Cash to close: $1,790,600

Investor read

• This is a 17×4bd/1ba + 16×3bd/1ba units multifamily listed at $6.39M.
• At list price, monthly cash flow is $33k ($396k/yr) — positive. Per door: $999/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($91k rent vs $6.39M).
• It's been on market 101 days — a 9% lower offer ($5.82M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $5.82M (9.0% 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 $192k of value loss. Plan a longer hold.
• 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: Roscoe Elementary (527 students, 94% FRL); John H. Francis Polytechnic (math 42% / reading 59%, grade D+, #324 of 1,170 statewide, top 28%, 2,232 students, 94% FRL) — zoned schools average 94% FRL vs 67% district-wide (27 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents soft (-0.5%/yr); 75 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.
• Current owner paid $2.96M; list at $6.39M implies a 116% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 0.0% rent growth), your $1.79M cash investment doubles in ~7 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 12.5% 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.
• At $91,086/mo this rent would consume 1397% of the median local household income ($78k/yr) (locally 2063% 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 101 days. Have you received any prior offers? Is the seller open to a 9% 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 1964 — 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?