252 S 7th

Montebello, CA 90640

$1,375,000F

6 bd · 6.0 ba · 2,304 sqft · Built 1915 · MultiFamily · Active · 102 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,769/mo
• Mortgage (P&I): −$7,211
• Tax + insurance: −$2,353
• HOA: −$0
• Vac / Maint / Mgmt: −$2,261
• Net cashflow: $-1,056/mo
• Annual: $-12,670/yr
• Cap rate: 5.37%
• Cash-on-cash: -3.29%
• DSCR: 0.85
• 1% rule: 0.78%
• Cash to close: $385,000

Investor read

• This is a 6 × 1-bed/1-bath units multifamily listed at $1.38M.
• At list price, monthly cash flow is $-1k ($-13k/yr) — negative. Per door: $-176/mo.
• To cash-flow at today's rent, offer at most $1.19M (13.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.08M (21.7% below list).
• It's been on market 102 days — a 9% lower offer ($1.25M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.08M (21.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $10k of loan paydown is wiped out by about $41k of value loss. Plan a longer hold.
• Location reads 58/100 on livability (#693 in CA) — a working-class tenant base; expect higher turnover. Strengths: employment B; Watch: schools D, amenities D, crime F.
• Montebello Unified (suburban): math 17% / reading 32% proficiency, ranked #419 of 517 in CA (top 81%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 76% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1915 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.9%/yr); 167 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals leasing fast (median 0d on market — plan ~1-2 weeks tenant-placement turnaround); 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.
• 8 sale attempts since 7y ago; this cycle's ask has dropped $120k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.4% vs local median 2.3% in Montebello — 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 $10,769/mo this rent would consume 162% of the median local household income ($80k/yr) (locally 3045% 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 102 days. Have you received any prior offers? Is the seller open to a 22% 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 1915 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?