2430 Coldwater Canyon Dr

Los Angeles, CA 90210

$2,249,000D-

3 bd · 2.0 ba · 1,680 sqft · Built 1958 · SingleFamily · Active · 158 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,643/mo
• Mortgage (P&I): −$11,794
• Tax + insurance: −$2,764
• HOA: −$0
• Vac / Maint / Mgmt: −$2,235
• Net cashflow: $-6,150/mo
• Annual: $-73,800/yr
• Cap rate: 3.01%
• Cash-on-cash: -11.72%
• DSCR: 0.48
• 1% rule: 0.47%
• Cash to close: $629,720

Investor read

• This is a 3-bed/2.0-bath single-family listed at $2.25M.
• At list price, monthly cash flow is $-6k ($-74k/yr) — negative.
• To cash-flow at today's rent, offer at most $1.16M (48.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.06M (52.7% below list).
• It's been on market 158 days — a 12% lower offer ($1.98M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.06M (52.7% below list) — sets the bar for 1% rule.
• In year one you build about $230k of equity ($16k loan paydown + $215k appreciation (9.6% local appreciation)).
• 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: West Hollywood Elementary (307 students, 30% FRL); Emerson Community Charter (492 students, 51% FRL, charter); University High School Charter (math 40% / reading 66%, grade C-, #285 of 1,170 statewide, top 25%, 1,338 students, 72% FRL, charter) — zoned schools average 51% FRL vs 67% district-wide (17 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1958 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+1.7%/yr); 310 active listings in the ZIP; 20 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 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 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 $1.18M; list at $2.25M implies a 91% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$370k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk; moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.0% 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.

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 158 days. Have you received any prior offers? Is the seller open to a 53% concession, seller financing, or rate buy-down credit?
• Built in 1958 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?