2616 Broadway

Walnut Park, CA 90255

$1,575,000D+

56 bd · 68.0 ba · 5,317 sqft · Built 1948 · MultiFamily · Active · 19 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $14,610/mo
• Mortgage (P&I): −$8,259
• Tax + insurance: −$1,708
• HOA: −$0
• Vac / Maint / Mgmt: −$3,068
• Net cashflow: $1,575/mo
• Annual: $18,899/yr
• Cap rate: 7.49%
• Cash-on-cash: 4.29%
• DSCR: 1.19
• 1% rule: 0.93%
• Cash to close: $441,000

Investor read

• This is a 1×2bd/1.5ba + 5×1bd/1ba + 2×?bd/1ba units multifamily listed at $1.57M.
• At list price, monthly cash flow is $2k ($19k/yr) — positive. Per door: $197/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 $1.46M (7.2% below list).
• It's been on market 19 days — a 2% lower offer ($1.55M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.46M (7.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $11k of loan paydown is wiped out by about $47k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#646 in CA) — a working-class tenant base; expect higher turnover. Strengths: commute A+; Watch: schools F, crime F, amenities 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.
• Watch-outs: built in 1948 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-1.4%/yr); 53 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 $330k; list at $1.57M implies a 377% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $14,610/mo this rent would consume 271% of the median local household income ($65k/yr) (locally 3774% 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 1948 — 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 F-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?
• 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.