4920 S Broadway

Los Angeles, CA 90037

$6,200,000C-

68 bd · 40.0 ba · 25,313 sqft · Built 2008 · MultiFamily · Pending · 79 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $67,737/mo
• Mortgage (P&I): −$32,513
• Tax + insurance: −$4,011
• HOA: −$0
• Vac / Maint / Mgmt: −$14,225
• Net cashflow: $16,988/mo
• Annual: $203,856/yr
• Cap rate: 9.58%
• Cash-on-cash: 11.74%
• DSCR: 1.52
• 1% rule: 1.09%
• Cash to close: $1,736,000

Investor read

• This is a 23 × 3-bed/1.8-bath units multifamily listed at $6.20M.
• At list price, monthly cash flow is $17k ($204k/yr) — positive. Per door: $739/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($68k rent vs $6.20M).
• It's been on market 79 days — a 6% lower offer ($5.83M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $5.83M (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $43k of loan paydown is wiped out by about $186k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#273 in CA) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment B; Watch: health & safety C-, crime 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.
• Zoned schools: West Vernon Avenue Elementary (562 students, 99% FRL); Los Angeles Academy Middle (976 students, 98% FRL); Santee Education Complex (math 17% / reading 47%, grade F, #674 of 1,170 statewide, top 59%, 1,753 students, 98% FRL) — zoned schools average 98% FRL vs 67% district-wide (31 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+1.7%/yr); 104 active listings in the ZIP; 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.
• Current owner paid $475k; list at $6.20M implies a 1205% gain — meaningful room to come down on a strong offer.
• 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.
• Cap rate 9.6% vs local median 2.1% in Los Angeles — 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.
• At $67,737/mo this rent would consume 1411% of the median local household income ($58k/yr) (locally 4200% 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 79 days. Have you received any prior offers? Is the seller open to a 6% 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?
• 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?
• 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.