2235 Gloaming Way

Los Angeles, CA 90210

$1,995,000D

2 bd · 2.0 ba · 1,665 sqft · Built 1961 · SingleFamily · Active · 37 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,762/mo
• Mortgage (P&I): −$10,462
• Tax + insurance: −$1,794
• HOA: −$0
• Vac / Maint / Mgmt: −$2,260
• Net cashflow: $-3,754/mo
• Annual: $-45,045/yr
• Cap rate: 4.04%
• Cash-on-cash: -8.06%
• DSCR: 0.64
• 1% rule: 0.54%
• Cash to close: $558,600

Investor read

• This is a 2-bed/2.0-bath single-family listed at $2.00M.
• At list price, monthly cash flow is $-4k ($-45k/yr) — negative.
• To cash-flow at today's rent, offer at most $1.33M (33.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.08M (46.1% below list).
• It's been on market 37 days — a 3% lower offer ($1.94M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.08M (46.1% below list) — sets the bar for 1% rule.
• In year one you build about $204k of equity ($14k loan paydown + $191k appreciation (9.6% local appreciation)).
• 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: West Hollywood Elementary (307 students, 30% FRL); Emerson Community Charter (492 students, 51% FRL, charter); University High School Charter (math 40% / reading 66%, grade C-, #285 of 1,170 statewide, top 25%, 1,338 students, 72% FRL, charter) — zoned schools average 51% FRL vs 67% district-wide (17 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: Rents rising (+1.7%/yr); 310 active listings in the ZIP; 24 comparable units currently listed for rent nearby; rentals at typical pace (median 27d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• 3 sale attempts; this cycle's ask has dropped $200k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $277k; list at $2.00M implies a 620% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$328k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.0% 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 $10,762/mo this rent would consume 69% 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

• 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 37 days. Have you received any prior offers? Is the seller open to a 46% concession, seller financing, or rate buy-down credit?
• Built in 1961 — 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.