4502 Elizabeth St

Cudahy, CA 90201

$3,180,000C

31 bd · 15.0 ba · 11,960 sqft · Built 1962 · MultiFamily · Pending · 36 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $34,168/mo
• Mortgage (P&I): −$16,676
• Tax + insurance: −$2,828
• HOA: −$0
• Vac / Maint / Mgmt: −$7,175
• Net cashflow: $7,489/mo
• Annual: $89,867/yr
• Cap rate: 9.12%
• Cash-on-cash: 10.09%
• DSCR: 1.45
• 1% rule: 1.07%
• Cash to close: $890,400

Investor read

• This is a 14×2bd/1.0ba + 1×3bd/1.0ba units multifamily listed at $3.18M.
• At list price, monthly cash flow is $7k ($90k/yr) — positive. Per door: $499/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($34k rent vs $3.18M).
• It's been on market 36 days — a 3% lower offer ($3.08M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $3.08M (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $22k of loan paydown is wiped out by about $95k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#616 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+, housing B; Watch: employment D+, amenities D, schools 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.
• Market conditions: 55 active listings in the ZIP; 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.
• 2 sale attempts; this cycle's ask has dropped $320k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $645k; list at $3.18M implies a 393% gain — meaningful room to come down on a strong offer.
• 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 $34,168/mo this rent would consume 673% of the median local household income ($61k/yr) (locally 6155% 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 36 days. Have you received any prior offers? Is the seller open to a 3% 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 1962 — 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 F-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?
• 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.