401 N Oakhurst Dr

Beverly Hills, CA 90210

$6,200,000A-

10 bd · 6.0 ba · 6,807 sqft · Built 1937 · MultiFamily · Active · 29 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $135,798/mo
• Mortgage (P&I): −$32,513
• Tax + insurance: −$6,123
• HOA: −$0
• Vac / Maint / Mgmt: −$28,518
• Net cashflow: $68,644/mo
• Annual: $823,728/yr
• Cap rate: 19.58%
• Cash-on-cash: 47.45%
• DSCR: 3.11
• 1% rule: 2.19%
• Cash to close: $1,736,000

Investor read

• This is a 10-bed/6.0-bath multifamily listed at $6.20M.
• At list price, monthly cash flow is $69k ($824k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($136k rent vs $6.20M).
• It's been on market 29 days — a 2% lower offer ($6.11M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $6.11M (1.5% below list) — sets the bar for market timing.
• In year one you build about $635k of equity ($43k loan paydown + $593k appreciation (9.6% local appreciation)).
• Location reads 74/100 on livability (#138 in CA, #4,810 nationally) — a middle-class / working-renter tenant base. Strengths: schools A+, amenities A+, commute A+; Watch: housing C-, health & safety C-, crime F.
• Beverly Hills Unified (suburban): math 57% / reading 73% proficiency, ranked #61 of 517 in CA (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 7% free/reduced lunch — higher-income household profile.
• Watch-outs: built in 1937 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+1.7%/yr); 308 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.
• Current owner paid $3.38M; list at $6.20M implies a 83% gain — meaningful room to come down on a strong offer.
• At projected returns (9.6% appreciation + 1.7% rent growth), your $1.74M cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$1.02M cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $135,798/mo this rent would consume 868% of the median local household income ($188k/yr) (locally 911% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Built in 1937 — 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 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?
• 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.
• 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.
• 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.