1626 S Barrington

Los Angeles, CA 90025

$2,950,000B

9 bd · 12.0 ba · 7,900 sqft · Built 1969 · MultiFamily · Active · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $44,444/mo
• Mortgage (P&I): −$15,470
• Tax + insurance: −$2,688
• HOA: −$0
• Vac / Maint / Mgmt: −$9,333
• Net cashflow: $16,952/mo
• Annual: $203,430/yr
• Cap rate: 13.22%
• Cash-on-cash: 24.72%
• DSCR: 2.10
• 1% rule: 1.51%
• Cash to close: $826,000

Investor read

• This is a 11 × 11-bed/12.5-bath units multifamily listed at $2.95M.
• At list price, monthly cash flow is $17k ($203k/yr) — positive. Per door: $2k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($44k rent vs $2.95M).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-1.0%/yr); year-one equity from $20k of loan paydown is wiped out by about $30k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#273 in CA) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment B; Watch: health & safety C-, crime F, cost of living F.
• 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.
• Zoned schools: Nora Sterry Elementary (191 students, 81% FRL); Daniel Webster Middle (442 students, 90% FRL); University High School Charter (math 40% / reading 66%, grade C-, #285 of 1,170 statewide, top 25%, 1,338 students, 72% FRL, charter).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: Rents soft (-0.4%/yr); 158 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.
• Current owner paid $770k; list at $2.95M implies a 283% gain — meaningful room to come down on a strong offer.
• At projected returns (-1.0% appreciation + 0.0% rent growth), your $826k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 13.2% vs local median 2.1% in Los Angeles — 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 $44,444/mo this rent would consume 513% of the median local household income ($104k/yr) (locally 4925% 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 1969 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.