17100 Downey Ave

Bellflower, CA 90706

$6,750,000C

36 bd · 22.0 ba · 18,229 sqft · Built 1972 · MultiFamily · Active · 187 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $75,967/mo
• Mortgage (P&I): −$35,398
• Tax + insurance: −$8,667
• HOA: −$0
• Vac / Maint / Mgmt: −$15,953
• Net cashflow: $15,949/mo
• Annual: $191,389/yr
• Cap rate: 9.13%
• Cash-on-cash: 10.13%
• DSCR: 1.45
• 1% rule: 1.13%
• Cash to close: $1,890,000

Investor read

• This is a 22 × 36-bed/22.0-bath units multifamily listed at $6.75M.
• At list price, monthly cash flow is $16k ($191k/yr) — positive. Per door: $725/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($76k rent vs $6.75M).
• It's been on market 187 days — a 12% lower offer ($5.94M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $5.94M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $47k of loan paydown is wiped out by about $202k of value loss. Plan a longer hold.
• Location reads 62/100 on livability (#483 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+; Watch: amenities C-, health & safety D+, crime F.
• Paramount Unified (suburban): math 15% / reading 34% proficiency, ranked #416 of 517 in CA (top 80%) — 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.
• Market conditions: Rents rising (+2.8%/yr); 70 active listings in the ZIP; 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.
• Current owner paid $5.03M; 34% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: moderate flood risk; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.1% vs local median 2.5% in Bellflower — 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 $75,967/mo this rent would consume 1158% of the median local household income ($79k/yr) (locally 4049% 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 187 days. Have you received any prior offers? Is the seller open to a 12% 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 1972 — 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.
• 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?
• 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.