1419 W 97th St

Westmont, CA 90047

$900,000C-

8 bd · 6.0 ba · 3,447 sqft · Built 1963 · MultiFamily · Active · 47 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,682/mo
• Mortgage (P&I): −$4,720
• Tax + insurance: −$990
• HOA: −$0
• Vac / Maint / Mgmt: −$1,823
• Net cashflow: $1,149/mo
• Annual: $13,794/yr
• Cap rate: 7.83%
• Cash-on-cash: 5.47%
• DSCR: 1.24
• 1% rule: 0.96%
• Cash to close: $252,000

Investor read

• This is a 3 × 3-bed/?-bath units multifamily listed at $900k.
• At list price, monthly cash flow is $1k ($14k/yr) — positive. Per door: $383/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 $868k (3.5% below list).
• It's been on market 47 days — a 3% lower offer ($873k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $868k (3.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $27k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#625 in CA) — a working-class tenant base; expect higher turnover. Strengths: schools A+, commute A+, housing B; Watch: crime F, amenities F, employment D-.
• Los Angeles Unified (urban): math 29% / reading 54% proficiency, ranked #223 of 517 in CA (top 43%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 67% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising fast (+5.5%/yr); 138 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.
• 8 sale attempts since 26y ago; this cycle's ask has dropped $300k (25%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $300k; list at $900k implies a 200% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 6→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.8% vs local median 3.6% in Westmont — 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 $8,682/mo this rent would consume 145% of the median local household income ($72k/yr) (locally 3323% 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 47 days. Have you received any prior offers? Is the seller open to a 4% 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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.