31851 Sea Level Dr #3 · Malibu, CA 90265

$1,099,000

3 bd · 4.0 ba · 2,906 sqft · SingleFamily · 500 Days on market

Built 1974 Excellent condition 7,386 sqft lot $378/sqft · 77% below area

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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 +20.3/30.0
• ARV discount +7.5/15.0
• DSCR +6.4/10.0
• Schools +6.2/10.0
• 1% rule +5.4/10.0
• Appreciation +5.3/10.0
• Condition / age +4.8/5.0
• Livability +2.7/5.0
• Rent growth +1.7/5.0

Listing remarks MLS

New Co-Ownership Opportunity: Own one-eighth of this professionally managed, turnkey home. Allure appeals to the senses: See this tasteful home's compelling modern lines, touch the beautiful interior elements, smell and hear the ocean breezes. The home, just steps from the beach, offers ocean views, a home theater and an infinity pool. The living room has a gas fireplace, beamed ceilings and sliding glass pocket doors framing the view. The gourmet kitchen offers high-end appliances, an island and breakfast bar, and access to a deck for grilling. Doors in the formal dining room reveal the pool deck, hot tub and fire pit. The primary suite has a fireplace, a walk-in closet and sliding glass pocket doors to a private garden. The en suite bathroom includes an elegant dual-sink vanity and steam shower. Downstairs is the state-of-the-art home theater with projection screen, two guest rooms with en suite bathrooms, and an office/flex space. The home comes fully furnished and professionally decorated.

Key facts

• Home theater
• Hot tub
• Gourmet kitchen

Tags

• HOME THEATER
• INFINITY POOL
• GOURMET KITCHEN
• DECK FOR GRILLING
• POOL DECK
• HOT TUB

What this means for you Summary

Snapshot

• This is a 3-bed/4.0-bath single-family listed at $1.10M. Condition is rated excellent.

Deal economics

• At list price, monthly cash flow is $1k ($16k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($11k rent vs $1.10M).
• Recommended offer: $967k (12.0% below list) — sets the bar for market timing.
• Cap rate 7.8% vs local median 0.7% in Malibu — 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.

Location & tenants

• Location reads 53/100 on livability (#979 in CA) — a working-class tenant base; expect higher turnover. Strengths: employment A+, schools B; Watch: housing C-, crime F, amenities F.
• Santa Monica-Malibu Unified (urban): math 61% / reading 74% proficiency, ranked #123 of 1,400 in CA (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents falling (-3.4%/yr); 636 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 67% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 19,697 units permitted in Los Angeles County in 2024 (9,426 in 5+ unit buildings).
• At $11,385/mo this rent would consume 69% of the median local household income ($197k/yr) (locally 420% 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 $14k of equity ($8k loan paydown + $7k appreciation (0.6% 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 (0.6% appreciation + 0.0% rent growth), your $308k cash investment doubles in ~10 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$70k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 500 days — a 12% lower offer ($967k) is reasonable based on typical stale-listing flexibility.
• 4 sale attempts since 2y 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.

Risks & watch-outs

• Watch-outs: flood insurance adds $66/mo.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $967,120 (12.0% below list)

Questions for the listing agent

1. It's been on market 500 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Built in 1974 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. Schools are B-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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Investment metrics

• 1% rule: 1.04% ✓
• Cap rate: 7.82%
• Cash-on-cash: 5.46%
• DSCR: 1.24
• GRM: 8.0

CMA / ARV

• ARV (median comp): $4,803,515
• List price: $1,099,000
• Delta: -77.12%
• Verdict: UNDERPRICED
• Comps: 10 within 1.0 mi

Show comp detail 2 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
31974 Pacific Coast Hwy	0.12mi	4/5.0 (+1)	2,861 (-2%)	22mo	$7,350,000	$2,569	65
31666 Broad Beach Rd	0.25mi	4/5.0 (+1)	2,902 (-0%)	18mo	$8,825,000	$3,041	64

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

0.62% appreciation · 0.0% rent growth · sell at horizon

5-year hold

• IRR: 3.5%
• Equity multiple: 1.17×
• Total profit: $51,904
• Equity at exit: $353,492

10-year hold

• IRR: 6.2%
• Equity multiple: 1.68×
• Total profit: $208,107
• Equity at exit: $453,419

Cash invested: $307,720 (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 90265

• Home prices YoY: 0.1%
• Rents YoY: -3.4%
• Active inventory: 636
• Price-to-rent: 8.0×

Monthly cashflow live

• Estimated rent: $11,385 medium
• Mortgage (P&I): −$5,763
• Tax est. 1.5%: −$1,374 /mo · $16,485/yr
• Insurance: −$458
• Flood insurance flood zone: −$66 /mo · $798/yr
• HOA: −$0
• Vacancy / Maint / Mgmt: −$2,391
• Net cashflow: $1,333

Break-even live

Break-even rent $9,698

Max offer price $1,099,000

Occupancy floor 83%

Sensitivity live

Price	-10% $2,092	-5% $1,713	+0% $1,333	+5% $953	+10% $573
Rent	-10% $433	-5% $883	+0% $1,333	+5% $1,783	+10% $2,232
Rate	-1.0pp $1,886	-0.5pp $1,612	base $1,333	+0.5pp $1,048	+1.0pp $758

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: $274,750
• Closing costs: $32,970
• Reserves months: —
• Total cash needed: —

Rent comps 9 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
31844 Seafield Dr Malibu, CA	3.0	2.5	3425	$16,500	$4.82	45d	1	0.01mi
31833 Sea Level Dr Malibu, CA	3.0	3.0	2200	$30,000	$13.64	19d	1	0.05mi
31952 Pacific Coast Hwy Malibu, CA	4.0	2.5	2413	$45,000	$18.65	45d	1	0.13mi
31648 Broad Beach Rd Malibu, CA	4.0	4.0	2922	$21,500	$7.36	45d	1	0.28mi
31626 Sea Level Dr Malibu, CA	4.0	5.0	3501	$25,000	$7.14	45d	1	0.40mi
31518 Broad Beach Rd Malibu, CA	3.0	3.0	2368	$18,000	$7.60	25d	1	0.47mi
31500 Victoria Point Rd Malibu, CA	4.0	4.5	3284	$35,000	$10.66	45d	1	0.55mi
4244 Avenida de la Encinal Malibu, CA	3.0	3.0	3100	$10,000	$3.23	18d	1	1.10mi
6326 Trancas Canyon Rd Malibu, CA	4.0	5.0	2791	$22,500	$8.06	45d	1	1.48mi

Listing history 22 events

1. 2026-06-21
   days on market $1,099,000 Active 500 DOM
2. 2026-06-18
   days on market $1,099,000 Active 497 DOM
3. 2026-06-17
   days on market $1,099,000 Active 496 DOM
4. 2026-06-16
   days on market $1,099,000 Active 495 DOM
5. 2026-06-15
   days on market $1,099,000 Active 494 DOM
6. 2026-06-13
   days on market $1,099,000 Active 492 DOM
7. 2026-06-13
   days on market $1,099,000 Active 491 DOM
8. 2026-06-09
   days on market $1,099,000 Active 488 DOM
9. 2026-06-08
   days on market $1,099,000 Active 487 DOM
10. 2026-06-07
    days on market $1,099,000 Active 486 DOM
11. 2026-06-04
    days on market $1,099,000 Active 483 DOM
12. 2026-06-03
    days on market $1,099,000 Active 482 DOM
13. 2026-06-02
    days on market $1,099,000 Active 481 DOM
14. 2026-06-01
    days on market $1,099,000 Active 480 DOM
15. 2026-05-31
    days on market $1,099,000 Active 479 DOM
16. 2025-08-01
    price
17. 2025-02-20
    listed Active
18. 2025-02-06
    listed $1,099,000 Active 1008-char remark

    Show marketing remark (1008 chars)

    New Co-Ownership Opportunity: Own one-eighth of this professionally managed, turnkey home. Allure appeals to the senses: See this tasteful home's compelling modern lines, touch the beautiful interior elements, smell and hear the ocean breezes. The home, just steps from the beach, offers ocean views, a home theater and an infinity pool. The living room has a gas fireplace, beamed ceilings and sliding glass pocket doors framing the view. The gourmet kitchen offers high-end appliances, an island and breakfast bar, and access to a deck for grilling. Doors in the formal dining room reveal the pool deck, hot tub and fire pit. The primary suite has a fireplace, a walk-in closet and sliding glass pocket doors to a private garden. The en suite bathroom includes an elegant dual-sink vanity and steam shower. Downstairs is the state-of-the-art home theater with projection screen, two guest rooms with en suite bathrooms, and an office/flex space. The home comes fully furnished and professionally decorated.

19. 2025-01-15
    historical
20. 2024-11-21
    listed $1,099,000 Active
21. 2024-08-15
    price
22. 2024-02-22
    listed Active

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌊 Flood 7/10 Severe FEMA zone X (unshaded) · 76% chance over 30 yrs
• 🔥 Wildfire 4/10 Moderate
• 🌡 Heat 3/10 Moderate 7 d/yr ≥85°F today · 19 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 4/10 Moderate 4 unhealthy d/yr today · 4 by 30 yrs out

Taxation est. · year 1

• Rental income: $136,622
• − Mortgage interest: −$61,561
• − Property taxes: −$16,485
• − Insurance: −$6,292
• − Repairs & maintenance: −$10,930
• − Management: −$10,930
• − Depreciation: −$31,971
• Taxable loss: −$1,547
• Est. tax savings @ 24.0%: +$371
• After-tax cash flow: $16,366/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.

Condition & rehab AI · 12 photos

Excellent 95/100 None rehab

This co-ownership opportunity presents a beautifully maintained, modern home with a stunning ocean view and a well-maintained infinity pool. The property is move-in ready and offers a high ROI with minimal maintenance required.

Value-add opportunities

• Both Landscaping and pool maintenance — Maintaining the pool and landscaping will keep the property looking its best and attract potential buyers
• Resale Home theater upgrade — A modern home theater can significantly increase the home's appeal to potential buyers
• Both Smart home integration — Adding smart home features can enhance the home's appeal and convenience for both buyers and renters

Renovation cost estimate screening

Value-add ROI direction

• Both Landscaping and pool maintenance — Maintaining the pool and landscaping will keep the property looking its best and attract potential buyers ↑
• Resale Home theater upgrade — A modern home theater can significantly increase the home's appeal to potential buyers ↑
• Both Smart home integration — Adding smart home features can enhance the home's appeal and convenience for both buyers and renters ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Santa Monica-Malibu Unified
• NCES district ID: 0635700
• Math proficiency: 61% ▬ 0.00%
• Reading proficiency: 74% ▬ 0.00%
• Median HH income: $81,489
• Composite: 61.58/100
• National rank: #1535
• State rank: #123 of 1400 in CA

Livability — Malibu

• Score: 53/100
• State rank: #979
• US rank: #24630

Category grades

Amenities F Commute F 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: Malibu, CA
• County: Los Angeles County · 9,444,647 people
• City population: 15,918
• Metro: Los Angeles-Long Beach-Anaheim, CA
• Population (ZIP): 15,918
• Household income: $196,742
• Rent vs Own: 21.5% rent · 78.5% own
• Severe rent burden: 420.0

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 (77%)
• Race & ethnicity: White 77% Two or more races 10% Hispanic / Latino 9% Asian 5% Black 1%
• Hispanic origin (detail): Mexican 6%
• Common ancestry: Italian 8% Scotch-Irish 3% Romanian 3%
• Foreign-born: 16% · Canada, South Korea, China
• Languages at home: 82% English-only · Spanish 6% Other Indo-European 6% French/Haitian/Cajun 2%

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: ▲ 0.62%
• Current HPI: 498.5117
• Rent YoY: ▼ -3.39%
• 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

Price history

+0.0% since first listed

7 events — show timeline

• 2025-08-01 Price Changed — TheMLS
• 2025-02-20 Listed — TheMLS
• 2025-02-06 Listed $1,099,000 TheMLS
• 2025-01-15 Listing Removed — CRMLS
• 2024-11-21 Listed $1,099,000 CRMLS
• 2024-08-15 Price Changed — TheMLS
• 2024-02-22 Listed — TheMLS