1127 5th St · Santa Monica, CA 90403

$2,550,000

12 bd · 8.0 ba · 6,366 sqft · MultiFamily public records · 34 Days on market

Built 1953 7,494 sqft lot $401/sqft · 28% below area Est $3565k · 28% under

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Why this score? — see what drove the B+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +27.8/30.0
• ARV discount +15.0/15.0
• DSCR +9.8/10.0
• 1% rule +6.3/10.0
• Schools +6.2/10.0
• Appreciation +4.9/10.0
• Livability +3.6/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 8 units. confirmed

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks MLS

A well-maintained 8-unit apartment community ideally located in one of Santa Monica's most sought-after and supply-constrained residential neighborhoods. Built in 1953 and coming to market for the first time in over 50 years, this offering represents a true generational ownership event a rare, pride-of-ownership asset in one of the most coveted and barrier-to-entry coastal markets in all of Southern California. Situated on a 7,492 square foot lot, the property totals 6,366 square feet of gross building area, averaging 796 square feet per unit across a single building. The asset features a diverse unit mix of one (1) studio, one (1) one bedroom, one bath unit, and six (6) two-bedroom, one bath units

Key facts

• 7,494 sq ft lot
• Parking
• Built 1953

What this means for you Summary

Snapshot

• This is a 2×1bd/1ba + 6×2bd/1ba units multifamily listed at $2.55M.

Deal economics

• At list price, monthly cash flow is $8k ($93k/yr) — positive. Per door: $973/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($29k rent vs $2.55M).
• Recommended offer: $2.47M (3.0% below list) — sets the bar for market timing.
• Cap rate 10.0% vs local median 1.2% in Santa Monica — 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.

Location & tenants

• Location reads 72/100 on livability (#178 in CA) — a middle-class / working-renter tenant base. Strengths: schools A+, amenities A+, commute A+; Watch: health & safety C-, crime F, cost of living F.
• Santa Monica-Malibu Unified (urban): math 61% / reading 74% proficiency, ranked #123 of 1,400 in CA (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents soft (-0.1%/yr); 93 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).
• At $28,867/mo this rent would consume 284% of the median local household income ($122k/yr) (locally 2265% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• In year one you build about $15k of equity ($18k loan paydown + $-3k appreciation (-0.1% local appreciation)).
• Los Angeles County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-0.1% appreciation + 0.0% rent growth), your $714k cash investment doubles in ~7 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$171k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 34 days — a 3% lower offer ($2.47M) is reasonable based on typical stale-listing flexibility.
• Current owner paid $60k; list at $2.55M implies a 4115% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1953 — expect roof / HVAC / electrical / plumbing capex.
• 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.

Recommended offer $2,473,500 (3.0% below list)

Questions for the listing agent

1. It's been on market 34 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Built in 1953 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. Schools are A-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?
7. 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?
8. 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.
9. 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.
10. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.13% ✓
• Cap rate: 9.96%
• Cash-on-cash: 13.08%
• DSCR: 1.58
• GRM: 7.4

CMA / ARV

• ARV (median comp): $3,564,514
• List price: $2,550,000
• Delta: -28.46%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 1 sale within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
725 9th St	0.58mi	12/11.0	7,250 (+14%)	20mo	$4,000,000	$552	21

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-0.1% appreciation · 0.0% rent growth · sell at horizon

5-year hold

• IRR: 9.8%
• Equity multiple: 1.45×
• Total profit: $323,345
• Equity at exit: $727,641

10-year hold

• IRR: 12.8%
• Equity multiple: 2.27×
• Total profit: $909,246
• Equity at exit: $864,509

Cash invested: $714,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 18 Strongly Tenant-Friendly
• State California: 18 Strongly Tenant-Friendly · D+13
• County: — inherits STATE
• City: — inherits STATE

AB1482 statewide rent cap (10% + CPI). Cities (SF/LA/Berkeley) layer stricter rules. Just-cause statewide.

Methodology + full state rankings →

ZIP-level market 90403

• Home prices YoY: -0.0%
• Rents YoY: -0.1%
• Active inventory: 93
• Price-to-rent: 62.9×

Monthly cashflow live

• Estimated rent: $28,867 high
• Mortgage (P&I): −$13,372
• Tax from tax record: −$586 /mo · $7,038/yr
• Insurance: −$1,062
• HOA: −$0
• Vacancy / Maint / Mgmt: −$6,062
• Net cashflow: $7,783

Break-even live

Break-even rent $19,014

Max offer price $2,550,000

Occupancy floor 68%

8-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 2× units	1	1	$6,756
▸ 6× units	2	1	$22,110
Total (8 units)			$28,867

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $637,500
• Closing costs: $76,500
• Reserves months: —
• Total cash needed: —

Listing history 16 events

1. 2026-06-18
   days on market $2,550,000 Active 34 DOM
2. 2026-06-17
   days on market $2,550,000 Active 33 DOM
3. 2026-06-16
   days on market $2,550,000 Active 32 DOM
4. 2026-06-15
   days on market $2,550,000 Active 31 DOM
5. 2026-06-13
   days on market $2,550,000 Active 29 DOM
6. 2026-06-13
   days on market $2,550,000 Active 28 DOM
7. 2026-06-09
   days on market $2,550,000 Active 25 DOM
8. 2026-06-08
   days on market $2,550,000 Active 24 DOM
9. 2026-06-07
   days on market $2,550,000 Active 23 DOM
10. 2026-06-04
    days on market $2,550,000 Active 20 DOM
11. 2026-06-03
    days on market $2,550,000 Active 19 DOM
12. 2026-06-02
    days on market $2,550,000 Active 18 DOM
13. 2026-06-01
    days on market $2,550,000 Active 17 DOM
14. 2026-05-31
    days on market $2,550,000 Active 16 DOM
15. 2026-05-15
    listed $2,550,000 Active 707-char remark

    Show marketing remark (707 chars)

    A well-maintained 8-unit apartment community ideally located in one of Santa Monica's most sought-after and supply-constrained residential neighborhoods. Built in 1953 and coming to market for the first time in over 50 years, this offering represents a true generational ownership event a rare, pride-of-ownership asset in one of the most coveted and barrier-to-entry coastal markets in all of Southern California. Situated on a 7,492 square foot lot, the property totals 6,366 square feet of gross building area, averaging 796 square feet per unit across a single building. The asset features a diverse unit mix of one (1) studio, one (1) one bedroom, one bath unit, and six (6) two-bedroom, one bath units

16. 1975-10-30
    soldstatus $60,500

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast CA · Resets to sale price

• Current annual tax: $7,038 · $586/mo
• Projected year-2 tax: $19,380 · $1,615/mo
• Expected delta: +$12,342/yr (+$1,029/mo · 175.4%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 7/10 Severe 7 d/yr ≥80°F today · 20 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 4/10 Moderate 5 unhealthy d/yr today · 6 by 30 yrs out

Taxation est. · year 1

• Rental income: $346,404
• − Mortgage interest: −$142,840
• − Property taxes: −$7,038
• − Insurance: −$12,750
• − Repairs & maintenance: −$27,712
• − Management: −$27,712
• − Depreciation: −$74,182
• Taxable income: $54,170
• Est. tax owed @ 24.0%: −$13,001
• After-tax cash flow: $80,401/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Santa Monica-Malibu Unified
• NCES district ID: 0635700
• Math proficiency: 61% ▬ 0.00%
• Reading proficiency: 74% ▬ 0.00%
• Median HH income: $81,489
• Composite: 61.58/100
• National rank: #1535
• State rank: #123 of 1400 in CA

Livability — Santa Monica

• Score: 72/100
• State rank: #178
• US rank: #5878

Category grades

Amenities A+ Commute A+ Cost of living F Crime F Employment A+ Housing B- Health & safety C- User ratings C+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Santa Monica, CA
• County: Los Angeles County · 9,444,647 people
• City population: 93,581
• Metro: Los Angeles-Long Beach-Anaheim, CA
• Population (ZIP): 23,867
• Household income: $121,925
• Rent vs Own: 73.8% rent · 26.2% own
• Severe rent burden: 2265.0

Population outlook (Los Angeles County) Hauer SSP2

• Today (2025): 10,940,515 people
• By 2030: 11,256,481 · +2.9%
• By 2040: 11,729,929 · +7.2%
• By 2050: 11,948,407 · +9.2%
• By 2075: 11,818,114 · +8.0%
• By 2100: 10,842,928 · -0.9%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (67%)
• Race & ethnicity: White 67% Hispanic / Latino 12% Two or more races 12% Asian 11% Black 2%
• Hispanic origin (detail): Mexican 9%
• Common ancestry: Italian 7% Romanian 5% Scotch-Irish 4%
• Foreign-born: 24% · Canada, China, Dominican Republic
• Languages at home: 75% English-only · Spanish 8% Other Indo-European 6% Russian/Polish/Slavic 4%

Political lean MEDSL · Los Angeles

• 2024 margin: Solid D (+32.9) · D 64.8% · R 31.9% · Other 3.3%
• 2008→2024 swing: -7.4pp toward R · 2008: 40.4pp · 2024: 32.9pp
• All cycles: 2024: D+32.9 2020: D+44.2 2016: D+48.0 2012: D+40.0 2008: D+40.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -0.10%
• Current HPI: 310.2427
• Rent YoY: ▼ -0.07%
• Metro: Los Angeles-Long Beach-Anaheim, CA
• State GDP YoY: ▲ 3.21%
• F500 in state: 116

Industry mix (Fortune 500 HQ in CA)

Industry	F500 HQs	Revenue
▸Technology	27	$1,492B
▸Financial Services	3	$174B
▸Retail	3	$44B
▸Insurance	3	$26B
▸Media / Entertainment	2	$115B
▸Pharmaceuticals / Biotech	2	$62B

Price history

+4114.9% since first listed

2 events — show timeline

• 2026-05-15 Listed $2,550,000 TheMLS
• 1975-10-30 Sold (Public Records) $60,500 Public Records

Property tax history

+2.4%/yr

Latest (2025): $7,038 · +6.5% YoY. Source: county tax records.