112 N Mar Vista Ave

Pasadena, CA 91106

$3,285,000C

12 bd · 10.0 ba · 6,920 sqft · Built 1959 · MultiFamily · Active · 122 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $36,134/mo
• Mortgage (P&I): −$17,227
• Tax + insurance: −$3,952
• HOA: −$0
• Vac / Maint / Mgmt: −$7,588
• Net cashflow: $7,367/mo
• Annual: $88,401/yr
• Cap rate: 8.98%
• Cash-on-cash: 9.61%
• DSCR: 1.43
• 1% rule: 1.10%
• Cash to close: $919,800

Investor read

• This is a 10 × 12-bed/10.0-bath units multifamily listed at $3.29M.
• At list price, monthly cash flow is $7k ($88k/yr) — positive. Per door: $737/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($36k rent vs $3.29M).
• It's been on market 122 days — a 12% lower offer ($2.89M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.89M (12.0% below list) — sets the bar for market timing.
• In year one you build about $24k of equity ($23k loan paydown + $1k appreciation (0.0% local appreciation)).
• Location reads 72/100 on livability (#181 in CA) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: health & safety D+, crime F, cost of living F.
• Pasadena Unified (urban): math 42% / reading 60% proficiency, ranked #123 of 517 in CA (top 24%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Mckinley (648 students, 83% FRL) — zoned schools average 83% FRL vs 55% district-wide (27 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1959 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-0.0%/yr); 75 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 2y ago; this cycle's ask has dropped $565k (15%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $2.12M; list at $3.29M implies a 55% gain — meaningful room to come down on a strong offer.
• At projected returns (0.0% appreciation + 0.0% rent growth), your $920k cash investment doubles in ~8 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$206k 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.

Questions for listing agent

• It's been on market 122 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 1959 — 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.
• 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?