20058 Pacific Coast Hwy #1 · Malibu, CA 90265

$2,500,000

4 bd · 3.0 ba · 1,932 sqft · MultiFamily public records · 111 Days on market

Built 1959 2,231 sqft lot

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Why this score? — see what drove the C 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 +21.7/30.0
• ARV discount +7.5/15.0
• DSCR +6.9/10.0
• Schools +6.2/10.0
• Appreciation +5.3/10.0
• 1% rule +4.9/10.0
• Livability +2.7/5.0
• Condition / age +2.5/5.0
• Rent growth +1.7/5.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 1 unit. estimate disagrees with records

Listing remarks MLS

This property held a three story 4 br 3 ba duplex of 2,732 sq. ft that was built in 1957, until the Palisades fire destroyed in in January of 2025. The Seller have come to the conclusion that their insurance is insufficient to replace the Duplex that was destroyed with the necessary code upgrades. The Fire replacement code allows what was there before plus 10% so the new structure totals 2,975 sq feet plus a 440 sq. ft. garage. The design also includes 735 sq. ft. of decks. The design can either be used as a duplex or a single family dwelling by opening a connecting door. No Coastal Permit is required because of the Governor's order regarding rebuilds. Please make an appointment to look at the plans by Vitus Matare & Assoc. Photos are actually Architectural renderings of the proposed house.

Key facts

• 2,231 sq ft lot
• Listed 110 days

What this means for you Summary

Snapshot

• This is a 4-bed/3.0-bath multifamily listed at $2.50M.

Deal economics

• At list price, monthly cash flow is $3k ($38k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $2.48M (0.9% below list).
• Recommended offer: $2.27M (9.0% below list) — sets the bar for market timing.
• Cap rate 8.1% vs local median 0.7% in Malibu — 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 53/100 on livability (#979 in CA) — a working-class tenant base; expect higher turnover. Strengths: employment A+, schools B; Watch: housing C-, crime F, amenities F.
• Santa Monica-Malibu Unified (urban): math 61% / reading 74% proficiency, ranked #123 of 1,400 in CA (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents falling (-3.4%/yr); 627 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 62% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 19,697 units permitted in Los Angeles County in 2024 (9,426 in 5+ unit buildings).
• At $24,778/mo this rent would consume 151% of the median local household income ($197k/yr) (locally 420% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• In year one you build about $33k of equity ($17k loan paydown + $15k appreciation (0.6% local appreciation)).
• Los Angeles County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (0.6% appreciation + 0.0% rent growth), your $700k cash investment doubles in ~10 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$160k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 111 days — a 9% lower offer ($2.27M) is reasonable based on typical stale-listing flexibility.
• Current owner paid $550k; list at $2.50M implies a 355% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: flood insurance adds $669/mo; built in 1959 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: in FEMA flood zone VE (mandatory federal flood insurance); 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.

Recommended offer $2,275,000 (9.0% below list)

Questions for the listing agent

1. It's been on market 111 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
2. Built in 1959 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
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. 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.
9. 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.
10. 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: 0.99% ✗
• Cap rate: 8.14%
• Cash-on-cash: 6.60%
• DSCR: 1.29
• GRM: 8.4

CMA / ARV

• ARV (median comp): $5,136,897
• List price: $2,500,000
• Delta: -51.33%
• Verdict: UNDERPRICED
• Comps: 1 within 2.0 mi

Projected returns pro-forma

0.62% appreciation · 0.0% rent growth · sell at horizon

5-year hold

• IRR: 3.8%
• Equity multiple: 1.19×
• Total profit: $130,010
• Equity at exit: $804,121

10-year hold

• IRR: 6.7%
• Equity multiple: 1.72×
• Total profit: $505,828
• Equity at exit: $1,031,436

Cash invested: $700,000 (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 90265

• Home prices YoY: 0.1%
• Rents YoY: -3.4%
• Active inventory: 627
• Price-to-rent: 25.2×

Monthly cashflow live

• Estimated rent: $24,778 medium
• Mortgage (P&I): −$13,110
• Tax from tax record: −$1,576 /mo · $18,906/yr
• Insurance: −$1,042
• Flood insurance flood zone: −$669 /mo · $8,028/yr
• HOA: −$0
• Vacancy / Maint / Mgmt: −$5,203
• Net cashflow: $3,178

Break-even live

Break-even rent $20,755

Max offer price $2,500,000

Occupancy floor 82%

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

Units	Beds	Baths	Est. rent
▸ 3× units	2	2	$24,777
Total (3 units)			$24,778

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: $625,000
• Closing costs: $75,000
• Reserves months: —
• Total cash needed: —

Rent comps 8 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
20448 Pacific Coast Hwy Malibu, CA	3.0	3.0	1647	$22,500	$13.66	4d	1	0.48mi
20537 Little Rock Way Unit A Malibu, CA	4.0	2.0	1892	$11,000	$5.81	43d	1	0.62mi
20537 Little Rock Way Malibu, CA	5.0	3.0	2292	$13,000	$5.67	43d	1	0.62mi
20647 Seaboard Rd Malibu, CA	3.0	2.0	2092	$27,000	$12.91	43d	1	0.69mi
20645 Seaboard Rd Malibu, CA	3.0	2.0	1564	$12,500	$7.99	4d	1	0.70mi
20755 Seaboard Rd Malibu, CA	5.0	3.0	2568	$55,000	$21.42	22d	1	0.81mi
3966 Las Flores Canyon Rd Malibu, CA	3.0	2.0	1450	$10,995	$7.58	43d	1	1.37mi
3908 Las Flores Canyon Rd Malibu, CA	3.0	2.0	1250	$9,995	$8.00	43d	1	1.44mi

Listing history 16 events

1. 2026-06-18
   days on market $2,500,000 Active 111 DOM
2. 2026-06-17
   days on market $2,500,000 Active 110 DOM
3. 2026-06-16
   days on market $2,500,000 Active 109 DOM
4. 2026-06-15
   days on market $2,500,000 Active 108 DOM
5. 2026-06-13
   days on market $2,500,000 Active 106 DOM
6. 2026-06-13
   days on market $2,500,000 Active 105 DOM
7. 2026-06-09
   days on market $2,500,000 Active 102 DOM
8. 2026-06-08
   days on market $2,500,000 Active 101 DOM
9. 2026-06-07
   days on market $2,500,000 Active 100 DOM
10. 2026-06-04
    days on market $2,500,000 Active 97 DOM
11. 2026-06-03
    days on market $2,500,000 Active 96 DOM
12. 2026-06-02
    days on market $2,500,000 Active 95 DOM
13. 2026-06-01
    days on market $2,500,000 Active 94 DOM
14. 2026-05-31
    days on market $2,500,000 Active 93 DOM
15. 2026-02-11
    listed $2,500,000 Active 809-char remark

    Show marketing remark (809 chars)

    This property held a three story 4 br 3 ba duplex of 2,732 sq. ft that was built in 1957, until the Palisades fire destroyed in in January of 2025. The Seller have come to the conclusion that their insurance is insufficient to replace the Duplex that was destroyed with the necessary code upgrades. The Fire replacement code allows what was there before plus 10% so the new structure totals 2,975 sq feet plus a 440 sq. ft. garage. The design also includes 735 sq. ft. of decks. The design can either be used as a duplex or a single family dwelling by opening a connecting door. No Coastal Permit is required because of the Governor's order regarding rebuilds. Please make an appointment to look at the plans by Vitus Matare & Assoc. Photos are actually Architectural renderings of the proposed house.

16. 1981-07-28
    soldstatus $550,000

ⓘ 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: $18,906 · $1,576/mo
• Projected year-2 tax: $19,000 · $1,583/mo
• Expected delta: +$94/yr (+$8/mo · 0.5%)

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

Climate risk First Street

• 🌊 Flood 10/10 Extreme FEMA zone VE · 99% chance over 30 yrs
• 🔥 Wildfire 6/10 Major
• 🌡 Heat 5/10 Major 7 d/yr ≥82°F today · 19 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 4/10 Moderate 6 unhealthy d/yr today · 6 by 30 yrs out

Taxation est. · year 1

• Rental income: $297,336
• − Mortgage interest: −$140,039
• − Property taxes: −$18,906
• − Insurance: −$20,528
• − Repairs & maintenance: −$23,787
• − Management: −$23,787
• − Depreciation: −$72,727
• Taxable loss: −$2,438
• Est. tax savings @ 24.0%: +$585
• After-tax cash flow: $38,723/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: Santa Monica-Malibu Unified
• NCES district ID: 0635700
• Math proficiency: 61% ▬ 0.00%
• Reading proficiency: 74% ▬ 0.00%
• Median HH income: $81,489
• Composite: 61.58/100
• National rank: #1535
• State rank: #123 of 1400 in CA

Livability — Malibu

• Score: 53/100
• State rank: #979
• US rank: #24630

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Malibu, CA
• County: Los Angeles County · 9,444,647 people
• City population: 15,918
• Metro: Los Angeles-Long Beach-Anaheim, CA
• Population (ZIP): 15,918
• Household income: $196,742
• Rent vs Own: 21.5% rent · 78.5% own
• Severe rent burden: 420.0

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 White (77%)
• Race & ethnicity: White 77% Two or more races 10% Hispanic / Latino 9% Asian 5% Black 1%
• Hispanic origin (detail): Mexican 6%
• Common ancestry: Italian 8% Scotch-Irish 3% Romanian 3%
• Foreign-born: 16% · Canada, South Korea, China
• Languages at home: 82% English-only · Spanish 6% Other Indo-European 6% French/Haitian/Cajun 2%

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: ▲ 0.62%
• Current HPI: 498.5117
• Rent YoY: ▼ -3.39%
• 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

+354.5% since first listed

2 events — show timeline

• 2026-02-11 Listed $2,500,000 TheMLS
• 1981-07-28 Sold (Public Records) $550,000 Public Records

Property tax history

+2.2%/yr

Latest (2025): $18,906 · +7.3% YoY. Source: county tax records.