1108 W 117th

West Athens, CA 90044

$1,050,000B

1 bd · 1.0 ba · 568 sqft · Built 1947 · MultiFamily · Active · 97 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $17,100/mo
• Mortgage (P&I): −$5,506
• Tax + insurance: −$1,595
• HOA: −$0
• Vac / Maint / Mgmt: −$3,591
• Net cashflow: $6,407/mo
• Annual: $76,887/yr
• Cap rate: 13.62%
• Cash-on-cash: 26.15%
• DSCR: 2.16
• 1% rule: 1.63%
• Cash to close: $294,000

Investor read

• This is a 7 × 13-bed/7.0-bath units multifamily listed at $1.05M.
• At list price, monthly cash flow is $6k ($77k/yr) — positive. Per door: $915/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($17k rent vs $1.05M).
• It's been on market 97 days — a 9% lower offer ($956k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $956k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $32k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#645 in CA) — a working-class tenant base; expect higher turnover. Strengths: schools A+, commute A+; Watch: crime D, amenities F, cost of living 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.
• Watch-outs: built in 1947 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-2.5%/yr); 172 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); 45% of comp listings sitting > 30 days — soft ceiling on asking rent; 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 since 20y 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 $580k; list at $1.05M implies a 81% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 0.0% rent growth), your $294k cash investment doubles in ~6 years — after that, you're playing with house money.
• At $17,100/mo this rent would consume 385% of the median local household income ($53k/yr) (locally 7490% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 97 days. Have you received any prior offers? Is the seller open to a 9% 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 1947 — 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 A-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?
• Crime grade is D 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?