836 Hilldale Ave

West Hollywood, CA 90069

$2,199,000D

1 bd · 1.0 ba · 322 sqft · Built 1947 · MultiFamily · Active · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $16,819/mo
• Mortgage (P&I): −$11,532
• Tax + insurance: −$2,626
• HOA: −$0
• Vac / Maint / Mgmt: −$3,532
• Net cashflow: $-871/mo
• Annual: $-10,448/yr
• Cap rate: 5.82%
• Cash-on-cash: -1.70%
• DSCR: 0.92
• 1% rule: 0.76%
• Cash to close: $615,720

Investor read

• This is a 1-bed/1.0-bath multifamily listed at $2.20M.
• At list price, monthly cash flow is $-871 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $2.05M (7.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.68M (23.5% below list).
• It's been on market 16 days — a 2% lower offer ($2.17M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.68M (23.5% below list) — sets the bar for 1% rule.
• In year one you build about $32k of equity ($15k loan paydown + $17k appreciation (0.8% local appreciation)).
• Location reads 70/100 on livability (#239 in CA) — a middle-class / working-renter tenant base. Strengths: schools A+, amenities A+, 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.
• Watch-outs: built in 1947 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-0.5%/yr); 379 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals leasing fast (median 8d on market — plan ~1-2 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.
• 11 sale attempts since 21y ago; this cycle's ask has dropped $196k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $1.36M; list at $2.20M implies a 62% gain — meaningful room to come down on a strong offer.
• By year 5, paydown + projected appreciation supports a ~$153k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 8→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.8% vs local median 1.5% in West Hollywood — 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 $16,819/mo this rent would consume 187% of the median local household income ($108k/yr) (locally 2412% 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?
• Built in 1947 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?
• 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?
• 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.