8324 Alameda

Downey, CA 90242

$2,100,000B-

10 bd · 10.0 ba · 5,424 sqft · Built 1962 · MultiFamily · Active · 223 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $24,843/mo
• Mortgage (P&I): −$11,013
• Tax + insurance: −$2,165
• HOA: −$0
• Vac / Maint / Mgmt: −$5,217
• Net cashflow: $6,449/mo
• Annual: $77,383/yr
• Cap rate: 9.98%
• Cash-on-cash: 13.16%
• DSCR: 1.59
• 1% rule: 1.18%
• Cash to close: $588,000

Investor read

• This is a 8 × 10-bed/10-bath units multifamily listed at $2.10M.
• At list price, monthly cash flow is $6k ($77k/yr) — positive. Per door: $806/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($25k rent vs $2.10M).
• It's been on market 223 days — a 12% lower offer ($1.85M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.85M (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 $63k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#187 in CA) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A; Watch: health & safety C-, crime D, cost of living F.
• Downey Unified (suburban): math 41% / reading 53% proficiency, ranked #481 of 1,400 in CA (top 34%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents flat; 26 active listings in the ZIP; 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.
• Current owner paid $595k; list at $2.10M implies a 253% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 10.0% vs local median 2.1% in Downey — 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 $24,843/mo this rent would consume 335% of the median local household income ($89k/yr) (locally 1451% 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 223 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 1962 — 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.
• Crime grade is D 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?
• 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.