500 Mound Ave

South Pasadena, CA 91030

$2,200,000C+

7 bd · 6.0 ba · 4,560 sqft · Built 1921 · MultiFamily · Active · 125 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $24,738/mo
• Mortgage (P&I): −$11,537
• Tax + insurance: −$1,814
• HOA: −$0
• Vac / Maint / Mgmt: −$5,195
• Net cashflow: $6,192/mo
• Annual: $74,300/yr
• Cap rate: 9.67%
• Cash-on-cash: 12.06%
• DSCR: 1.54
• 1% rule: 1.12%
• Cash to close: $616,000

Investor read

• This is a 6 × 7-bed/6.0-bath units multifamily listed at $2.20M.
• At list price, monthly cash flow is $6k ($74k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($25k rent vs $2.20M).
• It's been on market 125 days — a 12% lower offer ($1.94M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.94M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $15k of loan paydown is wiped out by about $66k 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: schools A+, amenities A+, commute 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.
• Watch-outs: built in 1921 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-0.1%/yr); 59 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.
• 3 sale attempts since 27y 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 $480k; list at $2.20M implies a 358% gain — meaningful room to come down on a strong offer.
• 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 0.8% 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 $24,738/mo this rent would consume 233% 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 125 days. Have you received any prior offers? Is the seller open to a 12% 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 1921 — 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.