11770 Pacific Coast Hwy Unit D

Malibu, CA 90265

$1,750,000D-

5 bd · 4.0 ba · 1,782 sqft · Built 1969 · Condo · Active · 39 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $13,505/mo
• Mortgage (P&I): −$9,177
• Tax + insurance: −$2,078
• HOA: −$827
• Vac / Maint / Mgmt: −$2,836
• Net cashflow: $-1,413/mo
• Annual: $-16,956/yr
• Cap rate: 5.32%
• Cash-on-cash: -3.46%
• DSCR: 0.85
• 1% rule: 0.77%
• Cash to close: $490,000

Investor read

• This is a 5-bed/4.0-bath condo listed at $1.75M.
• At list price, monthly cash flow is $-1k ($-17k/yr) — negative.
• To cash-flow at today's rent, offer at most $1.50M (14.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.35M (22.8% below list).
• It's been on market 39 days — a 3% lower offer ($1.70M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.35M (22.8% below list) — sets the bar for 1% rule.
• In year one you build about $23k of equity ($12k loan paydown + $11k appreciation (0.6% local appreciation)).
• Location reads 53/100 on livability (#979 in CA) — a working-class tenant base; expect higher turnover. Strengths: employment A+, schools B; Watch: housing C-, crime F, amenities F.
• Oxnard Union High (urban): math 28% / reading 51% proficiency, ranked #220 of 517 in CA (top 43%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents falling (-3.4%/yr); 636 active listings in the ZIP; high-income renter base; 1,759 units permitted in Ventura County in 2024 (1,196 in 5+ unit buildings).
• Ventura County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 20 sale attempts since 7y ago; this cycle's ask has dropped $150k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $1.35M; 30% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 5, paydown + projected appreciation supports a ~$112k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 5.3% vs local median 0.7% in Malibu — 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 $13,505/mo this rent would consume 82% of the median local household income ($197k/yr) (locally 420% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 39 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
• Built in 1969 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-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?