8427 Otis St · South Gate, CA 90280

$1,725,000

1 bd · 1.0 ba · 576 sqft · MultiFamily public records · 28 Days on market

Built 1951 9,601 sqft lot

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Why this score? — see what drove the D- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +10.8/30.0
• ARV discount +7.5/15.0
• Rent growth +3.7/5.0
• Schools +3.6/10.0
• Livability +3.2/5.0
• DSCR +3.1/10.0
• Condition / age +2.5/5.0
• 1% rule +2.3/10.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 7 units. estimate disagrees with records

Listing remarks

This rare 7-unit apartment investment opportunity in South Gate offers investors a well-maintained income property with strong upside potential in one of Southern California’s consistently high-demand rental markets. Built in 1951, the property features approximately 5,466 square feet of rentable space situated on a spacious 19,229 square foot lot. Strategically positioned in a dense rental corridor with historically low vacancy rates, the property provides stable in-place income with the opportunity to increase rents over time and enhance long-term value. The attractive layout features all single-story detached units, creating a desirable living environment for tenants while minimizi

Key facts

• Spacious lot
• Low vacancy rates
• 9,601 sq ft lot

Tags

• 7 UNIT APARTMENT INVESTMENT
• STRONG UPSIDE POTENTIAL
• HIGH DEMAND RENTAL MARKETS
• SPACIOUS LOT
• LOW VACANCY RATES
• STABLE IN PLACE INCOME

Property features AI

Finance

• Other: Property contains 7 total units across 9 buildings (per data); Additional parcel references listed
• Financial info: Total building area reported at 5,466 (units not shown in this section); Gross scheduled and gross operating income reported at $114,960; Net operating income reported at $88,060; Gross income reported at $114,960; Gross multiplier 14.96; Operating expenses reported at $26,900 (includes insurance, water/sewer, trash, gardener, maintenance, licenses); Tenant responsibility: gas, cable TV, electricity; Total actual rent reported at $9,580; Unit-level rents vary (examples: $1,000; $1,200; $1,385; $1,505; $1,600)
• HOA & community: Nearby park

Exterior

• Parking: Total of 13 parking spaces; 8 garage spaces; 5 uncovered spaces; Assigned private on-site parking; Each unit includes a garage space (units list 1 garage space each)
• Security: Carbon monoxide and smoke detectors
• Utilities: Public/district water (water connected); Public sewer (sewer connected); Electricity on property / electricity available; Natural gas available; Multiple separate gas and electric meters (7 each); Single separate water meter
• Home design: Single-story buildings; No shared/common walls; Entry level at ground floor; Stucco construction
• Construction: Stucco exterior; Asphalt roof; Concrete slab foundation; Year built per assessor
• Exterior features: Rain gutters; Chain-link fencing; No pool; Lot zoned approximately 2–5 units per acre; Access via paved city streets

Interior

• Kitchen: No appliances included; Fireplaces can be found in kitchen areas
• Bedrooms: All bedrooms on main level; Two primary bedrooms
• Flooring: Vinyl flooring; Laminate flooring
• Bathrooms: Multiple full bathrooms (units include full baths)
• Heating & cooling: Wall heaters; Wall/window cooling units; Has heating and cooling
• Interior features: Tile countertops; Double-pane Energy Star windows with screens; Carbon monoxide and smoke detectors; No interior steps (accessible); Doors swing inward; Entry slope less than 1 foot
• Laundry & utility: No laundry features listed

What this means for you Summary

Snapshot

• This is a 7 × 1-bed/1-bath units multifamily listed at $1.73M.

Deal economics

• At list price, monthly cash flow is $-782 ($-9k/yr) — negative. Per door: $-112/mo.
• To cash-flow at today's rent, offer at most $1.59M (8.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.25M (27.5% below list).
• Recommended offer: $1.25M (27.5% below list) — sets the bar for 1% rule.
• Cap rate 5.7% vs local median 2.8% in South Gate — 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.

Location & tenants

• Location reads 63/100 on livability (#459 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+; Watch: health & safety C-, schools D-, crime 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: Rents rising fast (+5.0%/yr); 51 active listings in the ZIP; 34 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); 19,697 units permitted in Los Angeles County in 2024 (9,426 in 5+ unit buildings).
• At $12,508/mo this rent would consume 201% of the median local household income ($75k/yr) (locally 4041% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $12k of loan paydown is wiped out by about $52k of value loss. Plan a longer hold.
• Los Angeles County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.

Negotiation context

• It's been on market 28 days — a 2% lower offer ($1.70M) is reasonable based on typical stale-listing flexibility.
• Current owner paid $110k; list at $1.73M implies a 1468% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1951 — expect roof / HVAC / electrical / plumbing capex.
• 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.

Recommended offer $1,250,800 (27.5% below list)

Questions for the listing agent

1. 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?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Built in 1951 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
7. 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?
8. 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?
9. 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.
10. 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.
11. 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.

Investment metrics

• 1% rule: 0.73% ✗
• Cap rate: 5.75%
• Cash-on-cash: -1.94%
• DSCR: 0.91
• GRM: 11.5

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 4.95% rent growth · sell at horizon

5-year hold

• IRR: -17.6%
• Equity multiple: 0.37×
• Total profit: $-304,929
• Equity at exit: $257,203

10-year hold

• IRR: -6.8%
• Equity multiple: 0.53×
• Total profit: $-225,238
• Equity at exit: $149,146

Cash invested: $483,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 18 Strongly Tenant-Friendly
• State California: 18 Strongly Tenant-Friendly · D+13
• County: — inherits STATE
• City: — inherits STATE

AB1482 statewide rent cap (10% + CPI). Cities (SF/LA/Berkeley) layer stricter rules. Just-cause statewide.

Methodology + full state rankings →

ZIP-level market 90280

• Rents YoY: 5.0%
• Active inventory: 51
• Price-to-rent: 80.4×

Monthly cashflow live

• Estimated rent: $12,508 high
• Mortgage (P&I): −$9,046
• Tax from tax record: −$899 /mo · $10,788/yr
• Insurance: −$719
• HOA: −$0
• Vacancy / Maint / Mgmt: −$2,627
• Net cashflow: $-782

Break-even live

Break-even rent $13,499

Max offer price $1,586,769

Occupancy floor —

7-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 7× units	1	1	$12,509
Total (7 units)			$12,508

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $431,250
• Closing costs: $51,750
• Reserves months: —
• Total cash needed: —

Rent comps 34 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
8123 Otis St Unit downstairs unit South Gate, CA	1.0	1.0	550	$1,550	$2.82	19d	1	0.22mi
8468 San Antonio Ave Apt D South Gate, CA	1.0	1.0	650	$1,900	$2.92	24d	1	0.46mi
8946 Bryson Ave Unit A South Gate, CA	—	1.0	425	$1,800	$4.24	17d	1	0.51mi
3723 Olive St Unit 2 Huntington Park, CA	1.0	1.0	700	$1,450	$2.07	7d	1	0.63mi
3613 Grand Ave Huntington Park, CA	—	1.0	450	$1,400	$3.11	14d	1	0.72mi
7716 California Ave Unit G Huntington Park, CA	1.0	1.0	450	$2,000	$4.44	43d	1	0.74mi
7715 California Ave Huntington Park, CA	1.0	1.0	650	$1,900	$2.92	43d	1	0.76mi
4013 Live Oak St Cudahy, CA	1.0	1.0	462	$1,650	$3.57	24d	1	0.77mi
8939 Elizabeth Ave South Gate, CA	2.0	1.0	500	$2,395	$4.79	16d	1	0.82mi
7520 Atlantic Ave Unit 4 Cudahy, CA	1.0	1.0	700	$1,600	$2.29	43d	1	0.82mi
8677 Dearborn Ave Apt C South Gate, CA	2.0	1.0	645	$2,700	$4.19	7d	1	0.89mi
4332 Florence Ave Unit 15 Bell, CA	1.0	1.0	450	$1,850	$4.11	21d	1	0.89mi
9518 California Ave South Gate, CA	1.0	1.0	700	$1,395	$1.99	43d	1	0.91mi
3247 Santa Ana St Huntington Park, CA	1.0	1.0	468	$1,645	$3.51	19d	1	0.91mi
3464 Duane Way Unit 1/2 South Gate, CA	1.0	1.0	650	$1,850	$2.85	43d	1	0.92mi
8601 State St Unit 18 South Gate, CA	1.0	1.0	500	$1,750	$3.50	43d	1	0.92mi
5018 Santa Ana St Bell Gardens, CA	1.0	1.0	650	$1,775	$2.73	43d	1	1.00mi
5033 Santa Ana St Unit C Cudahy, CA	1.0	1.0	466	$1,650	$3.54	16d	1	1.04mi
4986 Southern Ave South Gate, CA	1.0	1.0	700	$2,000	$2.86	43d	1	1.17mi
4403 Michigan Ave Unit A South Gate, CA	1.0	1.0	450	$2,250	$5.00	19d	1	1.21mi
4403 Michigan Ave Unit A South Gate, CA	1.0	1.0	450	$2,250	$5.00	20d	1	1.21mi
10120 California Ave Apt B South Gate, CA	1.0	1.0	400	$1,650	$4.12	43d	1	1.26mi
8178 Chestnut Ave Unit C South Gate, CA	—	1.0	490	$1,600	$3.27	18d	1	1.28mi
8178 Chestnut Ave Unit A South Gate, CA	1.0	1.0	550	$2,000	$3.64	18d	1	1.29mi
3505 Michigan Ave South Gate, CA	1.0	1.0	600	$1,895	$3.16	43d	1	1.29mi
4656 Bell Ave Unit A Bell, CA	1.0	1.0	400	$1,800	$4.50	17d	1	1.30mi
7716 Walker Ave Unit C Cudahy, CA	2.0	1.0	740	$2,080	$2.81	7d	1	1.30mi
7712 Walker Ave Unit A Cudahy, CA	2.0	1.0	720	$2,200	$3.06	15d	1	1.31mi
10243 San Antonio Ave South Gate, CA	2.0	1.0	650	$2,195	$3.38	43d	1	1.34mi
4656 Bell Pl Bell Gardens, CA	1.0	1.0	475	$1,950	$4.11	43d	1	1.35mi
9951 State St Unit D Lynwood, CA	1.0	1.0	575	$1,650	$2.87	24d	1	1.40mi
2844 Ardmore Ave Unit 8 South Gate, CA	1.0	1.0	692	$1,850	$2.67	20d	1	1.42mi
2844 Ardmore Ave Unit 3 South Gate, CA	1.0	1.0	692	$1,850	$2.67	24d	1	1.42mi
2815 Willow Pl Unit 19A South Gate, CA	2.0	1.0	604	$2,025	$3.35	43d	1	1.43mi

Listing history 15 events

1. 2026-06-18
   days on market $1,725,000 Active 28 DOM
2. 2026-06-17
   days on market $1,725,000 Active 27 DOM
3. 2026-06-16
   days on market $1,725,000 Active 26 DOM
4. 2026-06-15
   days on market $1,725,000 Active 25 DOM
5. 2026-06-13
   days on market $1,725,000 Active 23 DOM
6. 2026-06-09
   days on market $1,725,000 Active 19 DOM
7. 2026-06-08
   days on market $1,725,000 Active 18 DOM
8. 2026-06-07
   days on market $1,725,000 Active 17 DOM
9. 2026-06-04
   days on market $1,725,000 Active 14 DOM
10. 2026-06-03
    days on market $1,725,000 Active 13 DOM
11. 2026-06-02
    days on market $1,725,000 Active 12 DOM
12. 2026-06-01
    days on market $1,725,000 Active 11 DOM
13. 2026-05-31
    days on market $1,725,000 Active 10 DOM
14. 2026-05-21
    listed $1,725,000 Active
15. 1977-06-29
    soldstatus $110,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast CA · Resets to sale price

• Current annual tax: $10,788 · $899/mo
• Projected year-2 tax: $13,110 · $1,092/mo
• Expected delta: +$2,322/yr (+$194/mo · 21.5%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 5/10 Major 7 d/yr ≥91°F today · 22 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 5/10 Major 9 unhealthy d/yr today · 9 by 30 yrs out

Taxation est. · year 1

• Rental income: $150,096
• − Mortgage interest: −$96,627
• − Property taxes: −$10,788
• − Insurance: −$8,625
• − Repairs & maintenance: −$12,008
• − Management: −$12,008
• − Depreciation: −$50,182
• Taxable loss: −$40,141
• Est. tax savings @ 24.0%: +$9,634
• After-tax cash flow: $244/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Los Angeles Unified
• NCES district ID: 0622710
• Math proficiency: 29% ▼ -4.00%
• Reading proficiency: 54% ▲ 10.00%
• Median HH income: $50,403
• Composite: 35.67/100
• National rank: #4875
• State rank: #223 of 517 in CA

Livability — South Gate

• Score: 63/100
• State rank: #459
• US rank: #15665

Category grades

Amenities C Commute A+ Cost of living F Crime F Employment C Housing B- Health & safety C- User ratings B-

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: South Gate, CA
• County: Los Angeles County · 9,444,647 people
• City population: 91,365
• Metro: Los Angeles-Long Beach-Anaheim, CA
• Population (ZIP): 91,365
• Household income: $74,651
• Rent vs Own: 54.6% rent · 45.4% own
• Severe rent burden: 4041.0

Population outlook (Los Angeles County) Hauer SSP2

• Today (2025): 10,940,515 people
• By 2030: 11,256,481 · +2.9%
• By 2040: 11,729,929 · +7.2%
• By 2050: 11,948,407 · +9.2%
• By 2075: 11,818,114 · +8.0%
• By 2100: 10,842,928 · -0.9%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Hispanic (95%)
• Race & ethnicity: Hispanic / Latino 95% Two or more races 27% White 3% Native American 2%
• Hispanic origin (detail): Mexican 78%
• Foreign-born: 42% · Canada
• Languages at home: 16% English-only · Spanish 83%

Political lean MEDSL · Los Angeles

• 2024 margin: Solid D (+32.9) · D 64.8% · R 31.9% · Other 3.3%
• 2008→2024 swing: -7.4pp toward R · 2008: 40.4pp · 2024: 32.9pp
• All cycles: 2024: D+32.9 2020: D+44.2 2016: D+48.0 2012: D+40.0 2008: D+40.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -847.77%
• Current HPI: 419.791
• Rent YoY: ▲ 4.95%
• Metro: Los Angeles-Long Beach-Anaheim, CA
• State GDP YoY: ▲ 3.21%
• F500 in state: 116

Industry mix (Fortune 500 HQ in CA)

Industry	F500 HQs	Revenue
▸Technology	27	$1,492B
▸Financial Services	3	$174B
▸Retail	3	$44B
▸Insurance	3	$26B
▸Media / Entertainment	2	$115B
▸Pharmaceuticals / Biotech	2	$62B

Price history

+1468.2% since first listed

2 events — show timeline

• 2026-05-21 Listed $1,725,000 CRMLS
• 1977-06-29 Sold (Public Records) $110,000 Public Records

Property tax history

+10.6%/yr

Latest (2025): $10,788 · +3.8% YoY. Source: county tax records.