308 Pasadena

South Pasadena, CA 91030

$6,280,000C

22 bd · 20.0 ba · 9,990 sqft · Built 1953 · MultiFamily · Active · 89 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $74,225/mo
• Mortgage (P&I): −$32,933
• Tax + insurance: −$7,723
• HOA: −$0
• Vac / Maint / Mgmt: −$15,587
• Net cashflow: $17,982/mo
• Annual: $215,779/yr
• Cap rate: 9.73%
• Cash-on-cash: 12.27%
• DSCR: 1.55
• 1% rule: 1.18%
• Cash to close: $1,758,400

Investor read

• This is a 20 × 22-bed/20.0-bath units multifamily listed at $6.28M.
• At list price, monthly cash flow is $18k ($216k/yr) — positive. Per door: $899/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($74k rent vs $6.28M).
• It's been on market 89 days — a 6% lower offer ($5.90M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $5.90M (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $43k of loan paydown is wiped out by about $188k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#41 in CA, #1,541 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: health & safety D+, cost of living F.
• South Pasadena Unified (suburban): math 79% / reading 84% proficiency, ranked #46 of 1,400 in CA (top 3%) — strong family-tenant draw, lease renewals of 3-5y typical; only 10% free/reduced lunch — higher-income household profile.
• Zoned schools: Arroyo Vista Elementary (721 students, 17% FRL); South Pasadena Middle (1,084 students, 17% FRL); South Pasadena Senior High (1,477 students, 16% FRL).
• Watch-outs: built in 1953 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-0.1%/yr); 60 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).
• Los Angeles County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $4.55M; 38% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.7% vs local median 0.9% in South Pasadena — 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 $74,225/mo this rent would consume 700% of the median local household income ($127k/yr) (locally 992% 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 89 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 1953 — 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 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?
• 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.