1232 S San Gabriel

San Gabriel, CA 91776

$7,150,000B

6 bd · 36.0 ba · 12,441 sqft · Built 1963 · MultiFamily · Active · 91 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $105,418/mo
• Mortgage (P&I): −$37,495
• Tax + insurance: −$10,156
• HOA: −$0
• Vac / Maint / Mgmt: −$22,138
• Net cashflow: $35,629/mo
• Annual: $427,549/yr
• Cap rate: 12.27%
• Cash-on-cash: 21.36%
• DSCR: 1.95
• 1% rule: 1.47%
• Cash to close: $2,002,000

Investor read

• This is a 36 × 6-bed/38.0-bath units multifamily listed at $7.15M.
• At list price, monthly cash flow is $36k ($428k/yr) — positive. Per door: $990/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($105k rent vs $7.15M).
• It's been on market 91 days — a 9% lower offer ($6.51M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $6.51M (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $49k of loan paydown is wiped out by about $214k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#205 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+, employment A, crime B; Watch: health & safety D+, cost of living F.
• Rosemead Elementary (suburban): math 57% / reading 62% proficiency, ranked #274 of 1,400 in CA (top 20%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; 61% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents flat; 56 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.
• 14 sale attempts since 21y 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 $5.45M; 31% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-3.0% appreciation + 0.2% rent growth), your $2.00M cash investment doubles in ~7 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 12.3% vs local median 1.6% in San Gabriel — 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 $105,418/mo this rent would consume 1540% of the median local household income ($82k/yr) (locally 1715% 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 91 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 1963 — 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 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?
• 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.