12231 Pacific Ave

Los Angeles, CA 90066

$2,150,000C-

14 bd · 13.3 ba · 6,950 sqft · Built 1963 · MultiFamily · Active · 46 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $21,062/mo
• Mortgage (P&I): −$11,275
• Tax + insurance: −$3,583
• HOA: −$0
• Vac / Maint / Mgmt: −$4,423
• Net cashflow: $1,781/mo
• Annual: $21,370/yr
• Cap rate: 7.29%
• Cash-on-cash: 3.55%
• DSCR: 1.16
• 1% rule: 0.98%
• Cash to close: $602,000

Investor read

• This is a 5×2bd/1.9ba + 2×3bd/2ba units multifamily listed at $2.15M. Condition is rated fair.
• At list price, monthly cash flow is $2k ($21k/yr) — positive. Per door: $254/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 $2.11M (2.0% below list).
• It's been on market 46 days — a 3% lower offer ($2.09M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.09M (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $15k of loan paydown is wiped out by about $64k 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-, 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: Grand View Boulevard Elementary (541 students, 60% FRL); Marina Del Rey Middle (412 students, 91% FRL); Venice Senior High (math 33% / reading 64%, grade D, #373 of 1,170 statewide, top 32%, 2,107 students, 69% FRL).
• Market conditions: Rents soft (-0.1%/yr); 158 active listings in the ZIP; 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.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.3% 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 $21,062/mo this rent would consume 221% of the median local household income ($114k/yr) (locally 3174% 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 46 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1963 — 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?

Repairs flagged (vision-AI assessment)

• Major: roof — Signs of significant damage
• Major: exterior — Paint is peeling and faded
• Major: flooring — Worn and aged
• Major: interior walls/paint — Worn and faded paint
• Major: HVAC/mechanicals — No visible signs of recent maintenance
• Major: landscaping — Overgrown and unkempt