9616 Long Beach Blvd

South Gate, CA 90280

$840,000C-

3 bd · 1.0 ba · 3,753 sqft · Built 1940 · MultiFamily · Active · 444 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,033/mo
• Mortgage (P&I): −$4,405
• Tax + insurance: −$1,400
• HOA: −$0
• Vac / Maint / Mgmt: −$1,687
• Net cashflow: $541/mo
• Annual: $6,492/yr
• Cap rate: 7.07%
• Cash-on-cash: 2.76%
• DSCR: 1.12
• 1% rule: 0.96%
• Cash to close: $235,200

Investor read

• This is a 3-bed/1.0-bath multifamily listed at $840k.
• At list price, monthly cash flow is $541 ($6k/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 $803k (4.4% below list).
• It's been on market 444 days — a 12% lower offer ($739k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $739k (12.0% below list) — sets the bar for market timing.
• 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 63/100 on livability (#459 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+; 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: Stanford Avenue Elementary (397 students, 97% FRL); Southeast Middle (1,184 students, 96% FRL); South East High (math 30% / reading 68%, grade D, #369 of 1,170 statewide, top 32%, 2,057 students, 94% FRL) — zoned schools average 96% FRL vs 67% district-wide (28 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.0%/yr); 52 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.
• 4 sale attempts since 8y ago; this cycle's ask has dropped $55k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 7.1% vs local median 2.7% in South Gate — 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 $8,033/mo this rent would consume 129% of the median local household income ($75k/yr) (locally 4041% 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 444 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1940 — 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 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.
• 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.