10500 S Vermont Ave

Los Angeles, CA 90044

$4,999,000F

18 bd · 18.0 ba · 10,794 sqft · Built 1964 · MultiFamily · Active · 44 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $35,818/mo
• Mortgage (P&I): −$26,215
• Tax + insurance: −$6,943
• HOA: −$0
• Vac / Maint / Mgmt: −$7,522
• Net cashflow: $-4,862/mo
• Annual: $-58,345/yr
• Cap rate: 5.13%
• Cash-on-cash: -4.17%
• DSCR: 0.81
• 1% rule: 0.72%
• Cash to close: $1,399,720

Investor read

• This is a 19 × 1-bed/1-bath units multifamily listed at $5.00M.
• At list price, monthly cash flow is $-5k ($-58k/yr) — negative. Per door: $-256/mo.
• To cash-flow at today's rent, offer at most $4.14M (17.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $3.58M (28.3% below list).
• It's been on market 44 days — a 3% lower offer ($4.85M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $3.58M (28.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $35k of loan paydown is wiped out by about $150k 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-, schools D+, crime 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.
• Market conditions: Rents soft (-2.5%/yr); 172 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 4y 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.
• Climate carrying-cost: extreme-heat days projected 6→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.1% 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 $35,818/mo this rent would consume 806% of the median local household income ($53k/yr) (locally 7490% 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 44 days. Have you received any prior offers? Is the seller open to a 28% 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 1964 — 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 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?