203 Benrud St

South Monrovia Island, CA 91016

$985,000D-

4 bd · 3.0 ba · 1,588 sqft · Built 1951 · MultiFamily · Active · 166 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,250/mo
• Mortgage (P&I): −$5,165
• Tax + insurance: −$1,210
• HOA: −$0
• Vac / Maint / Mgmt: −$1,522
• Net cashflow: $-648/mo
• Annual: $-7,771/yr
• Cap rate: 5.50%
• Cash-on-cash: -2.82%
• DSCR: 0.87
• 1% rule: 0.74%
• Cash to close: $275,800

Investor read

• This is a 2×2bd/1.0ba + 1×1bd/2.0ba units multifamily listed at $985k.
• At list price, monthly cash flow is $-648 ($-8k/yr) — negative. Per door: $-216/mo.
• To cash-flow at today's rent, offer at most $871k (11.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $725k (26.4% below list).
• It's been on market 166 days — a 12% lower offer ($867k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $725k (26.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $30k of value loss. Plan a longer hold.
• Location reads 61/100 on livability (#521 in CA) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A, commute A-; Watch: schools D+, crime D+, amenities F.
• Monrovia Unified (suburban): math 39% / reading 48% proficiency, ranked #182 of 517 in CA (top 35%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1951 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.4%/yr); 76 active listings in the ZIP; 22 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 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.
• 8 sale attempts since 9y ago; this cycle's ask has dropped $60k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $645k; list at $985k implies a 53% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major flood risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $7,250/mo this rent would consume 90% of the median local household income ($97k/yr) (locally 2134% 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 166 days. Have you received any prior offers? Is the seller open to a 26% 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 1951 — 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?