123 N Swall Dr

Los Angeles, CA 90048

$2,499,000B+

8 bd · 8.0 ba · 7,540 sqft · Built 1928 · MultiFamily · Active · 79 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $28,839/mo
• Mortgage (P&I): −$13,105
• Tax + insurance: −$3,101
• HOA: −$0
• Vac / Maint / Mgmt: −$6,056
• Net cashflow: $6,576/mo
• Annual: $78,917/yr
• Cap rate: 9.45%
• Cash-on-cash: 11.28%
• DSCR: 1.50
• 1% rule: 1.15%
• Cash to close: $699,720

Investor read

• This is a 3 × 3-bed/?-bath units multifamily listed at $2.50M. Condition is rated good.
• At list price, monthly cash flow is $7k ($79k/yr) — positive. Per door: $2k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($29k rent vs $2.50M).
• It's been on market 79 days — a 6% lower offer ($2.35M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.35M (6.0% below list) — sets the bar for market timing.
• In year one you build about $173k of equity ($17k loan paydown + $156k appreciation (6.2% local appreciation)).
• 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 Hollywood Elementary (307 students, 30% FRL); John Burroughs Middle (reading 39%, 1,373 students, 82% FRL); Fairfax Senior High (math 40% / reading 61%, grade D+, #324 of 1,170 statewide, top 28%, 1,632 students, 81% FRL) — zoned schools at 64% FRL track the district average.
• Watch-outs: built in 1928 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents flat; 190 active listings in the ZIP; 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.
• 5 sale attempts since 18y 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.
• Current owner paid $1.53M; list at $2.50M implies a 63% gain — meaningful room to come down on a strong offer.
• At projected returns (6.2% appreciation + 0.1% rent growth), your $700k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$277k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• 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.

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?
• Built in 1928 — 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?