2385 Roscomare Unit F16

Los Angeles, CA 90077

$849,999D

2 bd · 2.0 ba · 1,378 sqft · Built 1975 · Condo · Active · 196 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,888/mo
• Mortgage (P&I): −$4,457
• Tax + insurance: −$608
• HOA: −$868
• Vac / Maint / Mgmt: −$1,237
• Net cashflow: $-1,282/mo
• Annual: $-15,383/yr
• Cap rate: 4.48%
• Cash-on-cash: -6.46%
• DSCR: 0.71
• 1% rule: 0.69%
• Cash to close: $238,000

Investor read

• This is a 2-bed/2.0-bath condo listed at $850k.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative.
• To cash-flow at today's rent, offer at most $624k (26.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $589k (30.7% below list).
• It's been on market 196 days — a 12% lower offer ($748k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $589k (30.7% below list) — sets the bar for 1% rule.
• In year one you build about $46k of equity ($6k loan paydown + $40k appreciation (4.7% 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: Roscomare Road Elementary (413 students, 9% 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 44% FRL vs 67% district-wide (24 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 181 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals at typical pace (median 27d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• 3 sale attempts since 2y ago; this cycle's ask has dropped $250k (23%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $138k; list at $850k implies a 518% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$73k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.5% 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.
• This rent runs 34% of the median local income ($206k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 196 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• Built in 1975 — 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?
• 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?