218 S Tower Dr · Beverly Hills, CA 90211

$9,900,000

24 bd · 32.0 ba · 26,972 sqft · MultiFamily public records · 48 Days on market

Built 1929 0.29 ac lot $367/sqft · 9% above area Est $9088k · 9% over

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Why this score? — see what drove the C 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 +18.6/30.0
• Appreciation +10.0/10.0
• Schools +5.9/10.0
• DSCR +5.8/10.0
• 1% rule +4.0/10.0
• Livability +3.7/5.0
• ARV discount +3.5/15.0
• Condition / age +2.5/5.0
• Rent growth +2.0/5.0

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 8 units. confirmed

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks

First time on the market in 26 years. Well maintained property with significant (25%) upside in rents. Priced at 12.3 x gross and 5% cap at closing; 9.8 x gross and 7% cap with rents at market. $309,375/unit and $367/bldg. S. F.

Key facts

• 0.29 acre lot
• 12 parking spots
• Built 1929

What this means for you Summary

Snapshot

• This is a 8 × 3-bed/4.0-bath units multifamily listed at $9.90M.

Deal economics

• At list price, monthly cash flow is $10k ($115k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $8.89M (10.2% below list).
• Recommended offer: $8.89M (10.2% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 74/100 on livability (#138 in CA, #4,810 nationally) — a middle-class / working-renter tenant base. Strengths: schools A+, amenities A+, commute A+; Watch: housing C-, health & safety C-, crime F.
• Beverly Hills Unified (suburban): math 57% / reading 73% proficiency, ranked #61 of 517 in CA (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 7% free/reduced lunch — higher-income household profile.
• Market conditions: Rents soft (-1.9%/yr); 44 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 $88,950/mo this rent would consume 870% of the median local household income ($123k/yr) (locally 824% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• In year one you build about $1.06M of equity ($68k loan paydown + $990k appreciation (10.0% local appreciation)).
• Los Angeles County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (10.0% appreciation + 0.0% rent growth), your $2.77M cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$1.70M cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 48 days — a 3% lower offer ($9.60M) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1929 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $8,895,000 (10.2% below list)

Questions for the listing agent

1. It's been on market 48 days. Have you received any prior offers? Is the seller open to a 10% concession, seller financing, or rate buy-down credit?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Built in 1929 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
7. 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?
8. 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.
9. 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.
10. 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: 0.90% ✗
• Cap rate: 7.45%
• Cash-on-cash: 4.14%
• DSCR: 1.18
• GRM: 9.3

CMA / ARV

• ARV (median comp): $9,088,042
• List price: $9,900,000
• Delta: 8.93%
• Verdict: FAIR
• Comps: 2 within 1.0 mi

Projected returns pro-forma

10.0% appreciation · 0.0% rent growth · sell at horizon

5-year hold

• IRR: 26.3%
• Equity multiple: 3.07×
• Total profit: $5,736,474
• Equity at exit: $8,918,704

10-year hold

• IRR: 22.3%
• Equity multiple: 6.75×
• Total profit: $15,940,756
• Equity at exit: $19,233,523

Cash invested: $2,772,000 (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 90211

• Home prices YoY: 1.9%
• Rents YoY: -1.9%
• Active inventory: 44
• Price-to-rent: 74.2×

Monthly cashflow live

• Estimated rent: $88,950 high
• Mortgage (P&I): −$51,917
• Tax from tax record: −$4,671 /mo · $56,052/yr
• Insurance: −$4,125
• HOA: −$0
• Vacancy / Maint / Mgmt: −$18,680
• Net cashflow: $9,558

Break-even live

Break-even rent $76,852

Max offer price $9,900,000

Occupancy floor 84%

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

Units	Beds	Baths	Est. rent
▸ 8× units	3	4	$88,952
Total (8 units)			$88,950

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: $2,475,000
• Closing costs: $297,000
• Reserves months: —
• Total cash needed: —

Listing history 12 events

1. 2026-06-18
   days on market $9,900,000 Active 48 DOM
2. 2026-06-17
   days on market $9,900,000 Active 47 DOM
3. 2026-06-16
   days on market $9,900,000 Active 46 DOM
4. 2026-06-15
   days on market $9,900,000 Active 45 DOM
5. 2026-06-13
   days on market $9,900,000 Active 43 DOM
6. 2026-06-13
   days on market $9,900,000 Active 42 DOM
7. 2026-06-09
   days on market $9,900,000 Active 39 DOM
8. 2026-06-08
   days on market $9,900,000 Active 38 DOM
9. 2026-06-07
   days on market $9,900,000 Active 37 DOM
10. 2026-06-04
    days on market $9,900,000 Active 34 DOM
11. 2026-06-03
    statusdays on market $9,900,000 Active 33 DOM
12. 2026-03-30
    listed Active

ⓘ 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: $56,052 · $4,671/mo
• Projected year-2 tax: $75,240 · $6,270/mo
• Expected delta: +$19,188/yr (+$1,599/mo · 34.2%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 4/10 Moderate FEMA zone X (unshaded) · 22% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 6/10 Major 7 d/yr ≥88°F today · 21 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 5/10 Major 7 unhealthy d/yr today · 7 by 30 yrs out

Taxation est. · year 1

• Rental income: $1,067,400
• − Mortgage interest: −$554,554
• − Property taxes: −$56,052
• − Insurance: −$49,500
• − Repairs & maintenance: −$85,392
• − Management: −$85,392
• − Depreciation: −$288,000
• Taxable loss: −$51,490
• Est. tax savings @ 24.0%: +$12,358
• After-tax cash flow: $127,051/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: Beverly Hills Unified
• NCES district ID: 0604830
• Math proficiency: 57% ▼ -7.00%
• Reading proficiency: 73% ▼ -2.00%
• Median HH income: $89,439
• Composite: 58.93/100
• National rank: #969
• State rank: #61 of 517 in CA

Livability — Beverly Hills

• Score: 74/100
• State rank: #138
• US rank: #4810

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Beverly Hills, CA
• County: Los Angeles County · 9,444,647 people
• City population: 38,852
• Metro: Los Angeles-Long Beach-Anaheim, CA
• Population (ZIP): 9,120
• Household income: $122,694
• Rent vs Own: 61.1% rent · 38.9% own
• Severe rent burden: 824.0

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: Predominantly White (66%)
• Race & ethnicity: White 66% Asian 20% Two or more races 6% Hispanic / Latino 6% Black 1%
• Hispanic origin (detail): Mexican 3%
• Common ancestry: Scotch-Irish 7% Romanian 4% Lithuanian 3%
• Foreign-born: 39% · Canada, South Korea, China
• Languages at home: 51% English-only · Other Indo-European 21% Spanish 7% Korean 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: ▲ 10.15%
• Current HPI: 529.6304
• Rent YoY: ▼ -1.89%
• 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

Property tax history

+2.2%/yr

Latest (2025): $56,052 · +2.6% YoY. Source: county tax records.