1817 2nd St

Duarte, CA 91010

$8,465,000B-

53 bd · 34.0 ba · 23,917 sqft · Built 1966 · MultiFamily · Active · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $115,718/mo
• Mortgage (P&I): −$44,391
• Tax + insurance: −$8,500
• HOA: −$0
• Vac / Maint / Mgmt: −$24,301
• Net cashflow: $38,526/mo
• Annual: $462,315/yr
• Cap rate: 11.75%
• Cash-on-cash: 19.51%
• DSCR: 1.87
• 1% rule: 1.37%
• Cash to close: $2,370,200

Investor read

• This is a 30 × 53-bed/31.0-bath units multifamily listed at $8.46M.
• At list price, monthly cash flow is $39k ($462k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($116k rent vs $8.46M).
• It's been on market 28 days — a 2% lower offer ($8.34M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $8.34M (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $59k of loan paydown is wiped out by about $254k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#97 in CA, #3,529 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: health & safety D, cost of living F.
• Duarte Unified (suburban): math 31% / reading 44% proficiency, ranked #241 of 517 in CA (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents soft (-2.5%/yr); 37 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.
• 3 sale attempts since 6y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $2.60M; list at $8.46M implies a 226% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 0.0% rent growth), your $2.37M cash investment doubles in ~8 years — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 11.8% vs local median 3.0% in Duarte — 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 $115,718/mo this rent would consume 1352% of the median local household income ($103k/yr) (locally 844% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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 1966 — 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.
• 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.