1502 Palm Dr · Hermosa Beach, CA 90254

$1,995,000

2 bd · 2.0 ba · 762 sqft · MultiFamily public records · 100 Days on market

Built 1913 2,922 sqft lot ↓ 11% since listing

---

Why this score? — see what drove the C grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +20.8/30.0
• ARV discount +7.5/15.0
• DSCR +6.6/10.0
• Appreciation +5.2/10.0
• Schools +4.8/10.0
• 1% rule +4.2/10.0
• Livability +3.6/5.0
• Rent growth +3.1/5.0
• Condition / age +2.5/5.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 4 units. confirmed

Listing remarks

1 UNIT DELIVERED VACANT! 1502 Palm Drive presents a rare 4-unit value-add multifamily opportunity in an A+ Hermosa Beach location just one block from the Strand and Noble Park. Tucked right around the corner from downtown Hermosa, the property enjoys a 97 “Walker’s Paradise” Walk Score with easy access to some of the area’s most popular local spots including the The Comedy & Magic Club, Ryla, and Baja Sharkeez. The property consists of four units totaling approximately 2,088 square feet on a full 30’ x 100’ lot. The unit mix includes two studio apartments and a detached cottage with a private yard and two 1-bed/1-bath units. Significant upside in re

Key facts

• Close to the beach
• Private yard
• 97 walk score

Tags

• 5 UNIT MULTIFAMILY OPPORTUNITY
• ONE BLOCK FROM THE STRAND
• PRIVATE YARD
• 97 WALK SCORE
• CLOSE TO THE BEACH

Property features AI

Finance

• Other: Total building area: 2,088 (units listed in source); 2 buildings on the parcel
• Financial info: Gross scheduled income: $76,584; Gross income: $76,584; Total actual rent (current): $6,382; Net operating income: $58,644; Operating expenses: $17,940; Expense highlights: Insurance $3,000; Maintenance $2,157.60; Water/Sewer $1,078; Trash $543.46; Pest control $593.18; Fuel $602; 5 leased units
• HOA & community: Community features: curbs, watersports, biking, street lighting, sidewalks

Exterior

• Parking: Assigned parking; 2 parking spaces (2 garage spaces assigned)
• Utilities: Public sewer; District/Public water; Separate electric meters (3); Separate gas meters (3); One separate water meter
• Home design: Multi-unit property with 5 total units; Single-story (1 story); No accessory dwelling unit
• Construction: Year built (source: Assessor)
• Exterior features: Yard; No pool

Interior

• Kitchen: Kitchens in each unit (appliances not specified)
• Bedrooms: Multiple 1-bedroom units (see unit breakdown)
• Bathrooms: Multiple full bathrooms (one per unit)
• Interior features: One-level property; Entry on main level
• Laundry & utility: Laundry inside

What this means for you Summary

Snapshot

• This is a 2×2bd/1.0ba + 2×1bd/1.0ba units multifamily listed at $2.00M.

Deal economics

• At list price, monthly cash flow is $3k ($33k/yr) — positive. Per door: $688/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.84M (7.8% below list).
• Recommended offer: $1.82M (9.0% below list) — sets the bar for market timing.
• Cap rate 7.9% vs local median 1.5% in Hermosa Beach — 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.

Location & tenants

• Location reads 71/100 on livability (#217 in CA) — a middle-class / working-renter tenant base. Strengths: schools A+, amenities A+, employment A+; Watch: health & safety C-, crime D, commute F.
• Hermosa Beach City Elementary (suburban): math 25% / reading 75% proficiency, ranked #102 of 517 in CA (top 20%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 4% free/reduced lunch — higher-income household profile.
• Market conditions: Rents rising (+2.4%/yr); 58 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 19,697 units permitted in Los Angeles County in 2024 (9,426 in 5+ unit buildings).
• At $18,401/mo this rent would consume 133% of the median local household income ($166k/yr) (locally 651% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• In year one you build about $22k of equity ($14k loan paydown + $8k appreciation (0.4% local appreciation)).
• Los Angeles County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (0.4% appreciation + 2.4% rent growth), your $559k cash investment doubles in ~8 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$136k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 100 days — a 9% lower offer ($1.82M) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts; this cycle's ask has dropped $255k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Risks & watch-outs

• Watch-outs: built in 1913 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $1,815,450 (9.0% below list)

Questions for the listing agent

1. It's been on market 100 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Built in 1913 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
5. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
6. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
7. Schools are A-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?
8. 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?
9. 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.
10. 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.
11. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 0.92% ✗
• Cap rate: 7.95%
• Cash-on-cash: 5.91%
• DSCR: 1.26
• GRM: 9.0

CMA / ARV

No comps found within radius.

Projected returns pro-forma

0.39% appreciation · 2.35% rent growth · sell at horizon

5-year hold

• IRR: 5.2%
• Equity multiple: 1.25×
• Total profit: $140,848
• Equity at exit: $618,433

10-year hold

• IRR: 9.6%
• Equity multiple: 2.07×
• Total profit: $600,101
• Equity at exit: $775,391

Cash invested: $558,600 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 18 Strongly Tenant-Friendly
• State California: 18 Strongly Tenant-Friendly · D+13
• County: — inherits STATE
• City: — inherits STATE

AB1482 statewide rent cap (10% + CPI). Cities (SF/LA/Berkeley) layer stricter rules. Just-cause statewide.

Methodology + full state rankings →

ZIP-level market 90254

• Home prices YoY: 0.1%
• Rents YoY: 2.4%
• Active inventory: 58
• Price-to-rent: 31.2×

Monthly cashflow live

• Estimated rent: $18,401 high
• Mortgage (P&I): −$10,462
• Tax from tax record: −$491 /mo · $5,890/yr
• Insurance: −$831
• HOA: −$0
• Vacancy / Maint / Mgmt: −$3,864
• Net cashflow: $2,753

Break-even live

Break-even rent $14,917

Max offer price $1,995,000

Occupancy floor 80%

Sensitivity live

Price	-10% $3,882	-5% $3,317	+0% $2,753	+5% $2,188	+10% $1,623
Rent	-10% $1,299	-5% $2,026	+0% $2,753	+5% $3,480	+10% $4,206
Rate	-1.0pp $3,757	-0.5pp $3,260	base $2,753	+0.5pp $2,236	+1.0pp $1,710

4-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 2× units	2	1	$10,642
▸ 2× units	1	1	$7,760
Total (4 units)			$18,401

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $498,750
• Closing costs: $59,850
• Reserves months: —
• Total cash needed: —

Rent comps 40 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
85 16th St Unit 04 Hermosa Beach, CA	1.0	1.0	535	$2,895	$5.41	25d	1	0.07mi
1653 Bayview Dr Unit A Hermosa Beach, CA	2.0	1.0	725	$4,500	$6.21	25d	1	0.08mi
1428 Monterey Blvd Hermosa Beach, CA	2.0	2.0	940	$6,050	$6.44	0d	2	0.11mi
1428 Monterey Blvd Unit H Hermosa Beach, CA	2.0	2.0	950	$7,500	$7.89	25d	1	0.11mi
1839 Manhattan Ave Hermosa Beach, CA	2.0	2.0	1125	$7,500	$6.67	25d	1	0.16mi
1100 Monterey Blvd Unit 13 Hermosa Beach, CA	2.0	2.0	950	$3,895	$4.10	4d	1	0.20mi
432 11th St Hermosa Beach, CA	1.0	1.0	625	$2,695	$4.31	14d	1	0.28mi
41 21st Ct Hermosa Beach, CA	1.0	1.0	650	$4,500	$6.92	25d	1	0.29mi
1720 Ardmore Ave #104 Hermosa Beach, CA	2.0	2.0	986	$4,800	$4.87	25d	1	0.31mi
63 9th St Hermosa Beach, CA	2.0	1.0	900	$9,500	$10.56	0d	1	0.34mi
832 Cypress Ave Hermosa Beach, CA	1.0	1.0	656	$3,690	$5.62	3d	1	0.41mi
720 21st St Hermosa Beach, CA	2.0	1.0	760	$5,188	$6.83	2d	1	0.43mi
701 9th St Unit 1 Hermosa Beach, CA	1.0	1.0	550	$3,200	$5.82	25d	1	0.44mi
2426 Silverstrand Ave Hermosa Beach, CA	2.0	1.0	1000	$5,250	$5.25	25d	1	0.46mi
2121 California 1 Unit 3 Hermosa Beach, CA	1.0	1.0	585	$2,425	$4.15	14d	1	0.48mi
600 Monterey Blvd Unit 5 Hermosa Beach, CA	2.0	2.0	980	$4,300	$4.39	25d	1	0.49mi
944 15th Pl Hermosa Beach, CA	2.0	1.0	1032	$4,490	$4.35	25d	1	0.50mi
22 6th St Unit B Hermosa Beach, CA	1.0	1.0	700	$5,300	$7.57	0d	1	0.51mi
530 The Strand Hermosa Beach, CA	1.0	1.0	578	$4,900	$8.48	25d	1	0.53mi
1204 Bonnie Brae St Unit 1204 Hermosa Beach, CA	2.0	1.0	950	$3,700	$3.89	12d	1	0.59mi
1204 Bonnie Brae St Hermosa Beach, CA	2.0	1.0	900	$3,500	$3.89	0d	1	0.59mi
350 Hermosa Ave Unit 02 Hermosa Beach, CA	2.0	1.0	850	$4,395	$5.17	25d	1	0.61mi
358 28th St Hermosa Beach, CA	1.0	2.0	978	$3,800	$3.89	0d	1	0.66mi
358 28th St Unit B Hermosa Beach, CA	1.0	2.0	978	$3,577	$3.66	21d	1	0.66mi
224 Bayview Dr Unit 226 Hermosa Beach, CA	2.0	1.0	600	$3,600	$6.00	7d	1	0.68mi
682 4th St Apt 1 Hermosa Beach, CA	1.0	1.0	569	$2,100	$3.69	6d	1	0.69mi
221 29th St Hermosa Beach, CA	1.0	1.0	750	$3,750	$5.00	25d	1	0.72mi
440 31st St Hermosa Beach, CA	2.0	1.0	816	$5,490	$6.73	25d	1	0.80mi
415 Herondo St Hermosa Beach, CA	2.0	1.0–2.0	740	$4,653	$6.29	0d	22	0.84mi
950 1st St Unit A Hermosa Beach, CA	2.0	1.0	850	$3,180	$3.74	25d	1	0.93mi
211 Yacht Club Way Redondo Beach, CA	1.0–2.0	1.0–2.0	875	$8,600	$9.83	0d	1	0.93mi
1030 Duncan Pl Manhattan Beach, CA	3.0	1.0	1100	$4,895	$4.45	44d	1	0.94mi
501 Anita St Unit 203 Redondo Beach, CA	2.0	2.0	973	$3,850	$3.96	44d	1	0.98mi
116 Highland Ave Manhattan Beach, CA	2.0	1.0	1080	$4,500	$4.17	13d	1	1.00mi
1555 Artesia Blvd Manhattan Beach, CA	1.0	1.0	550	$2,300	$4.18	5d	1	1.01mi
835 Hopkins Way Unit 304 Redondo Beach, CA	1.0	1.0	887	$3,710	$4.18	17d	1	1.03mi
1643 Artesia Blvd Manhattan Beach, CA	2.0	1.0	975	$2,600	$2.67	44d	1	1.10mi
720 N Guadalupe Ave Unit 4 Redondo Beach, CA	1.0	1.0	650	$2,300	$3.54	44d	1	1.17mi
720 N Guadalupe Ave Apt 2 Redondo Beach, CA	1.0	1.0	700	$2,350	$3.36	44d	1	1.17mi
712 N Guadalupe Ave Unit 8 Redondo Beach, CA	2.0	1.0	700	$2,900	$4.14	25d	1	1.21mi

Listing history 22 events

1. 2026-06-21
   days on market $1,995,000 Active 100 DOM
2. 2026-06-18
   days on market $1,995,000 Active 97 DOM
3. 2026-06-17
   days on market $1,995,000 Active 96 DOM
4. 2026-06-16
   days on market $1,995,000 Active 95 DOM
5. 2026-06-15
   days on market $1,995,000 Active 94 DOM
6. 2026-06-13
   days on market $1,995,000 Active 92 DOM
7. 2026-06-09
   days on market $1,995,000 Active 88 DOM
8. 2026-06-08
   days on market $1,995,000 Active 87 DOM
9. 2026-06-07
   days on market $1,995,000 Active 86 DOM
10. 2026-06-04
    days on market $1,995,000 Active 83 DOM
11. 2026-06-03
    days on market $1,995,000 Active 82 DOM
12. 2026-06-02
    days on market $1,995,000 Active 81 DOM
13. 2026-06-01
    days on market $1,995,000 Active 80 DOM
14. 2026-05-31
    days on market $1,995,000 Active 79 DOM
15. 2026-05-21
    price $1,995,000
16. 2026-04-30
    soldstatus $1,800,000
17. 2026-04-28
    price $2,149,500
18. 2026-04-24
    price $2,149,999
19. 2026-04-20
    price $2,249,999
20. 2026-03-26
    status Active
21. 2026-03-19
    status Pending Sale
22. 2026-03-06
    listed $2,250,000 Active

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast CA · Resets to sale price

• Current annual tax: $5,890 · $491/mo
• Projected year-2 tax: $15,162 · $1,264/mo
• Expected delta: +$9,272/yr (+$773/mo · 157.4%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 4/10 Moderate
• 🌡 Heat 4/10 Moderate 7 d/yr ≥84°F today · 22 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 4/10 Moderate 5 unhealthy d/yr today · 6 by 30 yrs out

Taxation est. · year 1

• Rental income: $220,812
• − Mortgage interest: −$111,751
• − Property taxes: −$5,890
• − Insurance: −$9,975
• − Repairs & maintenance: −$17,665
• − Management: −$17,665
• − Depreciation: −$58,036
• Taxable loss: −$170
• Est. tax savings @ 24.0%: +$41
• After-tax cash flow: $33,073/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Hermosa Beach City Elementary
• NCES district ID: 0617040
• Math proficiency: 25% ▼ -49.00%
• Reading proficiency: 75% ▼ -4.00%
• Median HH income: $107,814
• Composite: 48.1/100
• National rank: #2186
• State rank: #102 of 517 in CA

Livability — Hermosa Beach

• Score: 71/100
• State rank: #217
• US rank: #6898

Category grades

Amenities A+ Commute F Cost of living F Crime D Employment A+ Housing B- Health & safety C- User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Hermosa Beach, CA
• County: Los Angeles County · 9,444,647 people
• City population: 19,063
• Metro: Los Angeles-Long Beach-Anaheim, CA
• Population (ZIP): 19,063
• Household income: $166,442
• Rent vs Own: 49.4% rent · 50.6% own
• Severe rent burden: 651.0

Population outlook (Los Angeles County) Hauer SSP2

• Today (2025): 10,940,515 people
• By 2030: 11,256,481 · +2.9%
• By 2040: 11,729,929 · +7.2%
• By 2050: 11,948,407 · +9.2%
• By 2075: 11,818,114 · +8.0%
• By 2100: 10,842,928 · -0.9%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (73%)
• Race & ethnicity: White 73% Two or more races 15% Hispanic / Latino 10% Asian 7%
• Hispanic origin (detail): Mexican 5%
• Common ancestry: Romanian 4% Italian 3% Slovak 2%
• Foreign-born: 12% · Canada, Vietnam, China
• Languages at home: 89% English-only · Spanish 3% Other Indo-European 3% Vietnamese 1%

Political lean MEDSL · Los Angeles

• 2024 margin: Solid D (+32.9) · D 64.8% · R 31.9% · Other 3.3%
• 2008→2024 swing: -7.4pp toward R · 2008: 40.4pp · 2024: 32.9pp
• All cycles: 2024: D+32.9 2020: D+44.2 2016: D+48.0 2012: D+40.0 2008: D+40.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 0.39%
• Current HPI: 416.5152
• Rent YoY: ▲ 2.35%
• Metro: Los Angeles-Long Beach-Anaheim, CA
• State GDP YoY: ▲ 3.21%
• F500 in state: 116

Industry mix (Fortune 500 HQ in CA)

Industry	F500 HQs	Revenue
▸Technology	27	$1,492B
▸Financial Services	3	$174B
▸Retail	3	$44B
▸Insurance	3	$26B
▸Media / Entertainment	2	$115B
▸Pharmaceuticals / Biotech	2	$62B

Price history

-11.3% since first listed

8 events — show timeline

• 2026-05-21 Price Changed $1,995,000 CRMLS
• 2026-04-30 Sold (Public Records) $1,800,000 Public Records
• 2026-04-28 Price Changed $2,149,500 CRMLS
• 2026-04-24 Price Changed $2,149,999 CRMLS
• 2026-04-20 Price Changed $2,249,999 CRMLS
• 2026-03-26 Relisted — CRMLS
• 2026-03-19 Pending — CRMLS
• 2026-03-06 Listed $2,250,000 CRMLS

Property tax history

+2.1%/yr

Latest (2025): $5,890 · +5.2% YoY. Source: county tax records.