650 W Wilson

Glendale, CA 91203

$2,299,000B

12 bd · 6.0 ba · 4,892 sqft · Built 1956 · MultiFamily · Active · 38 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $27,280/mo
• Mortgage (P&I): −$12,056
• Tax + insurance: −$1,395
• HOA: −$0
• Vac / Maint / Mgmt: −$5,729
• Net cashflow: $8,100/mo
• Annual: $97,198/yr
• Cap rate: 10.52%
• Cash-on-cash: 15.10%
• DSCR: 1.67
• 1% rule: 1.19%
• Cash to close: $643,720

Investor read

• This is a 8 × 14-bed/8.0-bath units multifamily listed at $2.30M.
• At list price, monthly cash flow is $8k ($97k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($27k rent vs $2.30M).
• It's been on market 38 days — a 3% lower offer ($2.23M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.23M (3.0% below list) — sets the bar for market timing.
• In year one you build about $39k of equity ($16k loan paydown + $23k appreciation (1.0% local appreciation)).
• Location reads 72/100 on livability (#201 in CA) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, schools B+; Watch: health & safety C-, cost of living F.
• Glendale Unified (urban): math 53% / reading 66% proficiency, ranked #81 of 517 in CA (top 16%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: built in 1956 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-1.7%/yr); 29 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.
• 2 sale attempts since 2y 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.
• At projected returns (1.0% appreciation + 0.0% rent growth), your $644k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$142k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 8→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 10.5% vs local median 1.9% in Glendale — 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 $27,280/mo this rent would consume 397% of the median local household income ($82k/yr) (locally 2080% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 38 days. Have you received any prior offers? Is the seller open to a 3% 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 1956 — 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 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?
• 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.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.