1011 W 8th

Pomona, CA 91766

$950,000C-

8 bd · 4.0 ba · 3,500 sqft · Built 1964 · MultiFamily · Active · 33 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,578/mo
• Mortgage (P&I): −$4,982
• Tax + insurance: −$795
• HOA: −$0
• Vac / Maint / Mgmt: −$1,801
• Net cashflow: $999/mo
• Annual: $11,992/yr
• Cap rate: 7.56%
• Cash-on-cash: 4.51%
• DSCR: 1.20
• 1% rule: 0.90%
• Cash to close: $266,000

Investor read

• This is a 4 × 2-bed/1.0-bath units multifamily listed at $950k.
• At list price, monthly cash flow is $999 ($12k/yr) — positive. Per door: $250/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 $858k (9.7% below list).
• It's been on market 33 days — a 3% lower offer ($922k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $858k (9.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $28k of value loss. Plan a longer hold.
• Location reads 58/100 on livability (#676 in CA) — a working-class tenant base; expect higher turnover. Strengths: commute A+; Watch: schools D, crime F, amenities F.
• Pomona Unified (suburban): math 12% / reading 31% proficiency, ranked #444 of 517 in CA (top 86%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 73% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising (+1.7%/yr); 110 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.
• 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 7.6% vs local median 2.8% in Pomona — 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 $8,578/mo this rent would consume 126% of the median local household income ($82k/yr) (locally 2479% 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 33 days. Have you received any prior offers? Is the seller open to a 10% 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?
• 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?
• 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.