7 Clipper Rd · Rancho Palos Verdes, CA 90275

$2,400,000

7 bd · 6.0 ba · 4,457 sqft · MultiFamily public records · 84 Days on market

Built 1962 7,284 sqft lot Est $2050k · 17% over

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Why this score? — see what drove the F 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 +12.6/30.0
• Schools +7.1/10.0
• DSCR +3.8/10.0
• Rent growth +2.9/5.0
• Livability +2.9/5.0
• Condition / age +2.5/5.0
• 1% rule +2.3/10.0
• ARV discount +0.0/15.0
• Appreciation +0.0/10.0

Multi-family units

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

Listing remarks

7 Clipper Road is a rare four-unit offering in the heartof Rancho Palos Verdes. Perfect for investors or owner-occupants, this seaside property sits on agenerous 7,282 sq ft lot just one block from the Pacific Ocean, boasting panoramic views of thebay and surrounding cliffs. The 4,457 sq ft building features an exceptional unit mix: (1) Four Bed / Two Bath, (1) Two Bed / Two Bath, and (2) One Bed / One Bath units. Each unit is significantly larger than average, with well-designed layouts. The largest unit boasts fireplaces and washer/dryer hookups, and other attractive finishes. Three of the four units enjoy ocean views, and two have been recently updated while the remaining two offer subst

Key facts

• Generous lot
• Onsite laundry
• Recently updated

Tags

• GENEROUS LOT
• PANORAMIC VIEWS
• RECENTLY UPDATED
• NEWER ROOF
• ONSITE LAUNDRY
• GARAGE STORAGE

What this means for you Summary

Snapshot

• This is a 4 × 2-bed/?-bath units multifamily listed at $2.40M.

Deal economics

• At list price, monthly cash flow is $-308 ($-4k/yr) — negative. Per door: $-77/mo.
• To cash-flow at today's rent, offer at most $2.35M (2.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.74M (27.4% below list).
• Recommended offer: $1.74M (27.4% below list) — sets the bar for 1% rule.
• Cap rate 6.1% vs local median 1.8% in Rancho Palos Verdes — 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 58/100 on livability (#685 in CA) — a working-class tenant base; expect higher turnover. Strengths: crime A+, employment A+; Watch: amenities F, commute F, cost of living F.
• Palos Verdes Peninsula Unified (suburban): math 72% / reading 76% proficiency, ranked #51 of 1,400 in CA (top 4%) — strong family-tenant draw, lease renewals of 3-5y typical; only 3% free/reduced lunch — higher-income household profile.
• Zoned schools: Cornerstone At Pedregal Elementary (433 students, 6% FRL); Miraleste Intermediate (math 24% / reading 24%, grade F, #277 of 498 statewide, top 73%, 747 students, 9% FRL); Palos Verdes Peninsula High (2,290 students, 9% FRL).
• Zoned-school proficiency averages 24% at this address vs 74% district-wide (-50 pts) — the specific schools serving this property underperform the Palos Verdes Peninsula Unified average; the district grade overstates school quality for this exact location.
• Market conditions: Rents rising (+1.6%/yr); 163 active listings in the ZIP; high-income renter base; 19,697 units permitted in Los Angeles County in 2024 (9,426 in 5+ unit buildings).
• At $17,431/mo this rent would consume 117% of the median local household income ($179k/yr) (locally 495% 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 $17k of loan paydown is wiped out by about $72k 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 84 days — a 6% lower offer ($2.26M) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 2y 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.

Recommended offer $1,743,100 (27.4% 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. It's been on market 84 days. Have you received any prior offers? Is the seller open to a 27% concession, seller financing, or rate buy-down credit?
3. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
4. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
5. Built in 1962 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
6. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
7. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
8. 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?
9. 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?
10. 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.
11. 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.
12. 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: 6.14%
• Cash-on-cash: -0.55%
• DSCR: 0.98
• GRM: 11.5

CMA / ARV

• ARV (on-the-fly): $2,050,220
• Comps found: 1

Show comp detail 1 sale within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
7 Clipper Rd	0.00mi	7/6.0	4,457 (0%)	1mo	$2,050,000	$460	99

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 1.58% rent growth · sell at horizon

5-year hold

• IRR: -18.6%
• Equity multiple: 0.35×
• Total profit: $-434,373
• Equity at exit: $357,848

10-year hold

• IRR: -13.8%
• Equity multiple: 0.25×
• Total profit: $-506,652
• Equity at exit: $207,508

Cash invested: $672,000 (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 90275

• Rents YoY: 1.6%
• Active inventory: 163
• Price-to-rent: 45.9×

Monthly cashflow live

• Estimated rent: $17,431 high
• Mortgage (P&I): −$12,586
• Tax from tax record: −$493 /mo · $5,915/yr
• Insurance: −$1,000
• HOA: −$0
• Vacancy / Maint / Mgmt: −$3,661
• Net cashflow: $-308

Break-even live

Break-even rent $17,821

Max offer price $2,345,543

Occupancy floor 97%

Sensitivity live

Price	-10% $1,050	-5% $371	+0% $-308	+5% $-988	+10% $-1,667
Rent	-10% $-1,685	-5% $-997	+0% $-308	+5% $380	+10% $1,069
Rate	-1.0pp $900	-0.5pp $302	base $-308	+0.5pp $-930	+1.0pp $-1,563

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

Units	Beds	Baths	Est. rent
▸ 4× units	2	—	$17,432
Total (4 units)			$17,431

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: $600,000
• Closing costs: $72,000
• Reserves months: —
• Total cash needed: —

Listing history 10 events

1. 2025-12-11
   status Pending
2. 2025-11-10
   price $2,400,000
3. 2025-09-18
   listed $2,500,000 Active
4. 2024-11-01
   historical $3,195
5. 2024-09-15
   price $3,195
6. 2024-08-24
   listed $3,295
7. 2024-08-19
   historical $3,495
8. 2024-07-25
   price $3,495
9. 2024-07-19
   listed $3,600
10. 2022-01-24
    price $4,295

ⓘ 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: $5,915 · $493/mo
• Projected year-2 tax: $18,240 · $1,520/mo
• Expected delta: +$12,325/yr (+$1,027/mo · 208.4%)

ⓘ 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 4/10 Moderate
• 🌡 Heat 2/10 Low 8 d/yr ≥84°F today · 24 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 3/10 Moderate 4 unhealthy d/yr today · 4 by 30 yrs out

Taxation est. · year 1

• Rental income: $209,172
• − Mortgage interest: −$134,437
• − Property taxes: −$5,915
• − Insurance: −$12,000
• − Repairs & maintenance: −$16,734
• − Management: −$16,734
• − Depreciation: −$69,818
• Taxable loss: −$46,466
• Est. tax savings @ 24.0%: +$11,152
• After-tax cash flow: $7,453/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: Palos Verdes Peninsula Unified
• NCES district ID: 0629700
• Math proficiency: 72% ▲ 1.00%
• Reading proficiency: 76% ▼ -1.00%
• Median HH income: $130,734
• Composite: 71.42/100
• National rank: #460
• State rank: #51 of 1400 in CA

Livability — Rancho Palos Verdes

• Score: 58/100
• State rank: #685
• US rank: #20877

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Rancho Palos Verdes, CA
• County: Los Angeles County · 9,444,647 people
• City population: 40,945
• Metro: Los Angeles-Long Beach-Anaheim, CA
• Population (ZIP): 40,945
• Household income: $179,469
• Rent vs Own: 19.5% rent · 80.5% own
• Severe rent burden: 495.0

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: Diverse neighborhood (Simpson 0.67)
• Race & ethnicity: White 46% Asian 32% Two or more races 12% Hispanic / Latino 12% Black 2%
• Hispanic origin (detail): Mexican 7%
• Common ancestry: Romanian 3% Italian 3% Lithuanian 2%
• Foreign-born: 27% · China, Canada, South Korea
• Languages at home: 66% English-only · Chinese 8% Spanish 5% Other Asian/Pacific 5%

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: ▼ -806.44%
• Current HPI: 351.4252
• Rent YoY: ▲ 1.58%
• 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

+55778.9% since first listed

10 events — show timeline

• 2025-12-11 Pending — TheMLS
• 2025-11-10 Price Changed $2,400,000 TheMLS
• 2025-09-18 Listed $2,500,000 TheMLS
• 2024-11-01 Rental Removed $3,195 TURBOTENANT
• 2024-09-15 Price Changed $3,195 TURBOTENANT
• 2024-08-24 Listed for Rent $3,295 TURBOTENANT
• 2024-08-19 Rental Removed $3,495 TURBOTENANT
• 2024-07-25 Price Changed $3,495 TURBOTENANT
• 2024-07-19 Listed for Rent $3,600 TURBOTENANT
• 2022-01-24 Price Changed $4,295 RENT.

Property tax history

+2.8%/yr

Latest (2025): $5,915 · +14.7% YoY. Source: county tax records.