6527 Marlow Ave

Bell Gardens, CA 90201

$839,900F

2 bd · 2.0 ba · 880 sqft · Built 1954 · MultiFamily · Active · 228 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,102/mo
• Mortgage (P&I): −$4,405
• Tax + insurance: −$831
• HOA: −$0
• Vac / Maint / Mgmt: −$1,071
• Net cashflow: $-1,205/mo
• Annual: $-14,455/yr
• Cap rate: 4.57%
• Cash-on-cash: -6.15%
• DSCR: 0.73
• 1% rule: 0.61%
• Cash to close: $235,172

Investor read

• This is a 2×1bd/1ba + 1×2bd/1ba units multifamily listed at $840k.
• At list price, monthly cash flow is $-1k ($-14k/yr) — negative. Per door: $-402/mo.
• To cash-flow at today's rent, offer at most $627k (25.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $510k (39.3% below list).
• It's been on market 228 days — a 12% lower offer ($739k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $510k (39.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $25k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#388 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+; Watch: crime C-, amenities D+, employment D+.
• Montebello Unified (suburban): math 17% / reading 32% proficiency, ranked #419 of 517 in CA (top 81%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 76% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1954 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 55 active listings in the ZIP; 26 comparable units currently listed for rent nearby; rentals at typical pace (median 17d 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).
• Los Angeles County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts; this cycle's ask has dropped $90k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $150k; list at $840k implies a 460% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $5,102/mo this rent would consume 100% of the median local household income ($61k/yr) (locally 6155% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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?
• It's been on market 228 days. Have you received any prior offers? Is the seller open to a 39% 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 1954 — 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?