610 Fillmore

Pomona, CA 91768

$1,690,000F

4 bd · 2.0 ba · 1,600 sqft · Built 1960 · MultiFamily · Active · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,995/mo
• Mortgage (P&I): −$8,863
• Tax + insurance: −$1,753
• HOA: −$0
• Vac / Maint / Mgmt: −$1,889
• Net cashflow: $-3,509/mo
• Annual: $-42,109/yr
• Cap rate: 3.80%
• Cash-on-cash: -8.90%
• DSCR: 0.60
• 1% rule: 0.53%
• Cash to close: $473,200

Investor read

• This is a 1×3bd/1ba + 2×2bd/1ba + 2×1bd/1ba units multifamily listed at $1.69M.
• At list price, monthly cash flow is $-4k ($-42k/yr) — negative. Per door: $-702/mo.
• To cash-flow at today's rent, offer at most $1.07M (36.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $900k (46.8% below list).
• It's been on market 16 days — a 2% lower offer ($1.66M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $900k (46.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $12k of loan paydown is wiped out by about $51k of value loss. Plan a longer hold.
• Location reads 58/100 on livability (#676 in CA) — a working-class tenant base; expect higher turnover. Strengths: commute A+; Watch: schools D, crime F, amenities F.
• Pomona Unified (suburban): math 12% / reading 31% proficiency, ranked #444 of 517 in CA (top 86%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 73% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 59 active listings in the ZIP; 19 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); 47% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 11 sale attempts since 21y 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 $1.27M; 33% 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 3.8% vs local median 2.8% in Pomona — 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 $8,995/mo this rent would consume 142% of the median local household income ($76k/yr) (locally 1403% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• 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 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?