2546 Potrero Ave

El Monte, CA 91733

$1,750,000C-

13 bd · 7.0 ba · 6,045 sqft · Built 1962 · MultiFamily · Active · 411 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $18,767/mo
• Mortgage (P&I): −$9,177
• Tax + insurance: −$3,063
• HOA: −$0
• Vac / Maint / Mgmt: −$3,941
• Net cashflow: $2,585/mo
• Annual: $31,024/yr
• Cap rate: 8.07%
• Cash-on-cash: 6.33%
• DSCR: 1.28
• 1% rule: 1.07%
• Cash to close: $490,000

Investor read

• This is a 4 × 3-bed/?-bath units multifamily listed at $1.75M.
• At list price, monthly cash flow is $3k ($31k/yr) — positive. Per door: $646/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($19k rent vs $1.75M).
• It's been on market 411 days — a 12% lower offer ($1.54M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.54M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $12k of loan paydown is wiped out by about $52k of value loss. Plan a longer hold.
• Location reads 61/100 on livability (#554 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+; Watch: crime D, amenities F, cost of living F.
• El Monte Union High (suburban): math 34% / reading 59% proficiency, ranked #543 of 1,400 in CA (top 39%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Wilkerson Elementary (343 students, 91% FRL); South El Monte High (1,300 students, 86% FRL).
• Market conditions: 57 active listings in the ZIP; 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.
• 5 sale attempts since 5y 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.
• 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 8.1% vs local median 2.4% in El Monte — 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 $18,767/mo this rent would consume 330% of the median local household income ($68k/yr) (locally 2017% 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 411 days. Have you received any prior offers? Is the seller open to a 12% 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 1962 — 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 D 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?