10600 S Inglewood Ave

Lennox, CA 90304

$7,500,000C+

54 bd · 55.0 ba · 20,800 sqft · Built 1957 · MultiFamily · Pending · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $90,063/mo
• Mortgage (P&I): −$39,331
• Tax + insurance: −$9,498
• HOA: −$0
• Vac / Maint / Mgmt: −$18,913
• Net cashflow: $22,321/mo
• Annual: $267,856/yr
• Cap rate: 9.86%
• Cash-on-cash: 12.76%
• DSCR: 1.57
• 1% rule: 1.20%
• Cash to close: $2,100,000

Investor read

• This is a 54 × 1-bed/1-bath units multifamily listed at $7.50M.
• At list price, monthly cash flow is $22k ($268k/yr) — positive. Per door: $413/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($90k rent vs $7.50M).
• It's been on market 20 days — a 2% lower offer ($7.39M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $7.39M (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $52k of loan paydown is wiped out by about $225k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#580 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+, housing B; Watch: schools D+, employment D+, amenities D.
• Lennox (suburban): math 36% / reading 44% proficiency, ranked #771 of 1,400 in CA (top 55%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 83% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1957 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents flat; 24 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.
• 2 sale attempts since 25y 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 $351k; list at $7.50M implies a 2035% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $90,063/mo this rent would consume 1685% of the median local household income ($64k/yr) (locally 1761% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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 1957 — 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.
• 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.