729 W Foothill Blvd

Monrovia, CA 91016

$7,600,000C+

40 bd · 32.0 ba · 20,160 sqft · Built 1958 · MultiFamily · Active · 131 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $117,100/mo
• Mortgage (P&I): −$39,855
• Tax + insurance: −$6,660
• HOA: −$0
• Vac / Maint / Mgmt: −$24,591
• Net cashflow: $45,994/mo
• Annual: $551,927/yr
• Cap rate: 13.56%
• Cash-on-cash: 25.94%
• DSCR: 2.15
• 1% rule: 1.54%
• Cash to close: $2,128,000

Investor read

• This is a 32 × 39-bed/32.0-bath units multifamily listed at $7.60M.
• At list price, monthly cash flow is $46k ($552k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($117k rent vs $7.60M).
• It's been on market 131 days — a 12% lower offer ($6.69M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $6.69M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $53k of loan paydown is wiped out by about $228k of value loss. Plan a longer hold.
• Location reads 52/100 on livability (#993 in CA) — a working-class tenant base; expect higher turnover. Strengths: employment A+, health & safety A-; Watch: crime C-, amenities F, commute F.
• Monrovia Unified (suburban): math 39% / reading 48% proficiency, ranked #182 of 517 in CA (top 35%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mayflower Elementary (math 66% / reading 62%, grade B, #197 of 1,571 statewide, top 13%, 502 students, 35% FRL); Clifton Middle (math 42% / reading 56%, grade C-, #107 of 498 statewide, top 22%, 589 students, 42% FRL); Monrovia High (math 35% / reading 58%, grade D-, #408 of 1,170 statewide, top 35%, 1,538 students, 48% FRL) — zoned schools at 42% FRL track the district average.
• Watch-outs: built in 1958 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.4%/yr); 76 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.
• 6 sale attempts since 2y 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 $1.57M; list at $7.60M implies a 383% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.4% rent growth), your $2.13M cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 13.6% vs local median 2.0% in Monrovia — 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.

Questions for listing agent

• It's been on market 131 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 1958 — 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.
• 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.