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11426 Gale 7-Plex
D- Composite 36.16
Why this score? — see what drove the D- 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 +15.9/30.0
  • DSCR +4.9/10.0
  • Schools +3.8/10.0
  • 1% rule +3.0/10.0
  • Rent growth +3.0/5.0
  • Livability +3.0/5.0
  • Condition / age +2.5/5.0
  • ARV discount +0.0/15.0
  • Appreciation +0.0/10.0

$1,850,000

11426 Gale · Hawthorne, CA 90250
10 bd · 7.0 ba · 4,766 sqft · MultiFamily public records · 23 Days on market
Built 1957 8,225 sqft lot Est $1463k · 26% over

🖨 Deal sheet (PDF) 📄 Offer letter ✓ Due diligence

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 7 units. confirmed

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks

Excellent opportunity to acquire a 7-unit residential investment property in Hawthorne featuring a desirable unit mix of six (6) one-bedroom units and one (1) spacious four-bedroom unit located at the rear of the property. The property has benefited from various upgrades and improvements over the years while still offering potential for a new owner to further enhance and add value. Most recently, Unit D was remodeled with new flooring, fresh paint, new cabinetry with stone countertops, and new windows. The property generates approximately $12,555 per month in gross rental income when fully occupied and includes an on-site laundry room with owner-owned laundry equipment, providing an additio

Key facts

  • Fresh paint
  • On-site laundry room
  • New windows

Tags

SPACIOUS FOUR-BEDROOM UNITREMODELED WITH NEW FLOORINGFRESH PAINTNEW WINDOWSON-SITE LAUNDRY ROOMOWNER-OWNED LAUNDRY EQUIPMENT

Property features AI

Finance

  • Other: Six units currently leased; Total building area: 4,766
  • Financial info: Total actual rent collected: $12,555; Gross scheduled/gross income: $150,660; Laundry income: $1,285; Expenses include fuel, trash, insurance, water/sewer and electric (amounts reported)
  • HOA & community: Rent control applies

Exterior

  • Parking: Total of 12 parking spaces; Six uncovered spaces; Six carport spaces (attached carports, tandem covered areas, driveway-level access)
  • Utilities: Public sewer; District/public water
  • Home design: Attached multi-unit property; Single building with two stories; 0–1 unit per acre lot characteristic
  • Construction: One building; Year built reported by seller
  • Exterior features: No pool; Curbs and sidewalks; Suburban setting

Interior

  • Kitchen: Kitchens in each unit (appliances not specified)
  • Bedrooms: One 4-bedroom unit (unit with attached garage); Six 1-bedroom units
  • Bathrooms: One bathroom in several units (unit-level bath counts vary)
  • Heating & cooling: Wall heaters
  • Interior features: Front entry; Two levels; Entry level is 1
  • Laundry & utility: On-site laundry area with washer and dryer included; Separate water meter for the property; Eight separate gas meters; Eight separate electric meters

Neighborhood map

Property Rental comp Retail Transit Schools Stadiums Fortune 500 · Circle radius: 3.0 mi
Loading POIs…

What this means for you Summary

Snapshot

  • This is a 6×1bd/1ba + 1×4bd/1ba units multifamily listed at $1.85M.

Deal economics

  • At list price, monthly cash flow is $887 ($11k/yr) — positive. Per door: $127/mo.
  • The deal already cash-flows at list — no discount required.
  • To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.49M (19.6% below list).
  • Recommended offer: $1.49M (19.6% below list) — sets the bar for 1% rule.
  • Cap rate 6.9% vs local median 2.0% in Hawthorne — 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 60/100 on livability (#597 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+, housing B; Watch: crime F, cost of living F, health & safety F.
  • Hawthorne (suburban): math 38% / reading 47% proficiency, ranked #673 of 1,400 in CA (top 48%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 78% free/reduced lunch — lower-income household profile, screen leases tightly.
  • Zoned schools: Eucalyptus (715 students, 67% FRL); Hawthorne Middle (721 students, 62% FRL); Lawndale High (math 16% / reading 42%, grade F, #770 of 1,170 statewide, top 66%, 1,921 students, 72% FRL).
  • Zoned-school proficiency averages 29% at this address vs 42% district-wide (-14 pts) — the specific schools serving this property underperform the Hawthorne average; the district grade overstates school quality for this exact location.
  • Market conditions: Rents rising (+1.9%/yr); 95 active listings in the ZIP; solid renter incomes; 19,697 units permitted in Los Angeles County in 2024 (9,426 in 5+ unit buildings).
  • At $14,880/mo this rent would consume 228% of the median local household income ($78k/yr) (locally 6620% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

  • Local home prices are declining (-3.0%/yr); year-one equity from $13k of loan paydown is wiped out by about $56k of value loss. Plan a longer hold.
  • Los Angeles County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.

Negotiation context

  • It's been on market 23 days — a 2% lower offer ($1.82M) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

  • Watch-outs: built in 1957 — expect roof / HVAC / electrical / plumbing capex.
  • 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.
Recommended offer $1,488,000 (19.6% below list)

Questions for the listing agent

  1. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
  2. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
  3. Built in 1957 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
  4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
  5. 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?
  6. 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?
  7. 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.
  8. 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.
  9. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

1% rule
0.80%
Cap rate
6.87%
Cash-on-cash
2.05%
DSCR
1.09
GRM
10.4

CMA / ARV

ARV (on-the-fly)
$1,463,162
Comps found
4
Show comp detail 4 sales within ~0.75 mi
Address Dist Beds/Ba Sqft Sold Price $/sf Match
10730 Burin Ave 0.67mi 11/7.0 (+1) 4,660 (-2%) 2mo $1,340,000 $288 58
11717 Cedar Ave 0.62mi 11/— (+1) 4,698 (-1%) 20mo $1,300,000 $277 47
11726 Freeman Ave 0.71mi 10/6.0 4,564 (-4%) 10mo $1,400,000 $307 47
4317 W 120th St 0.68mi 9/6.0 (-1) 4,463 (-6%) 11mo $1,610,000 $361 39

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

Projected returns pro-forma

-3.0% appreciation · 1.89% rent growth · sell at horizon

5-year hold
IRR
-14.2%
Equity multiple
0.50×
Total profit
$-260,699
Equity at exit
$275,841
10-year hold
IRR
-7.1%
Equity multiple
0.57×
Total profit
$-224,127
Equity at exit
$159,954

Cash invested: $518,000 (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.

ZIP-level market 90250

Rents YoY
1.9%
Active inventory
95
Price-to-rent
82.1×

Monthly cashflow live

Estimated rent
$14,880 high interval (Pro) →
Mortgage (P&I)
$9,702
Tax from tax record
$396 /mo · $4,753/yr
Insurance
$771
HOA
$0
Vacancy / Maint / Mgmt
$3,125
Net cashflow
$887

Break-even live

Break-even rent $13,758
Max offer price $1,850,000
Occupancy floor 89%

Sensitivity live

Price -10% $1,934 -5% $1,410 +0% $887 +5% $363 +10% $-161
Rent -10% $-289 -5% $299 +0% $887 +5% $1,474 +10% $2,062
Rate -1.0pp $1,818 -0.5pp $1,357 base $887 +0.5pp $407 +1.0pp $-80

7-unit breakdown (identical units grouped — click to expand)

UnitsBedsBathsEst. rent
1× unit 4 1 $3,620
Total (7 units) $14,880

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
$462,500
Closing costs
$55,500
Reserves months
Total cash needed

Loan-product check · same deal, 3 products live

Conventional

25% down · 7.5% · 30yr

Down + closing
Monthly P&I
Monthly cashflow
DSCR
Eligible?

Personal DTI + credit; lowest rate.

DSCR

20% down · 8.5% · 30yr

Down + closing
Monthly P&I
Monthly cashflow
DSCR
Eligible?

No personal income docs; deal must DSCR.

Hard money

10% down · 12.0% · 12mo

Down + closing
Monthly P&I
Monthly cashflow
DSCR
Eligible?

Short-term bridge; refi at stabilization.

Listing history 17 events

  1. 2026-06-22
    days on market $1,850,000 Active 23 DOM
  2. 2026-06-21
    days on market $1,850,000 Active 22 DOM
  3. 2026-06-18
    days on market $1,850,000 Active 19 DOM
  4. 2026-06-17
    days on market $1,850,000 Active 18 DOM
  5. 2026-06-16
    days on market $1,850,000 Active 17 DOM
  6. 2026-06-15
    days on market $1,850,000 Active 16 DOM
  7. 2026-06-13
    days on market $1,850,000 Active 14 DOM
  8. 2026-06-13
    days on market $1,850,000 Active 13 DOM
  9. 2026-06-09
    days on market $1,850,000 Active 10 DOM
  10. 2026-06-08
    days on market $1,850,000 Active 9 DOM
  11. 2026-06-07
    days on market $1,850,000 Active 8 DOM
  12. 2026-06-04
    days on market $1,850,000 Active 5 DOM
  13. 2026-06-03
    days on market $1,850,000 Active 4 DOM
  14. 2026-06-02
    days on market $1,850,000 Active 3 DOM
  15. 2026-06-01
    days on market $1,850,000 Active 2 DOM
  16. 2026-05-31
    remarks 699-char remark
  17. 2026-05-31
    listed $1,850,000 Active 1 DOM

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

Tax reassessment forecast CA · Resets to sale price

Current annual tax
$4,753 · $396/mo
Projected year-2 tax
$14,060 · $1,172/mo
Expected delta
+$9,307/yr (+$776/mo · 195.8%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

  • 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
  • 🔥 Wildfire 1/10 Low
  • 🌡 Heat 5/10 Major 7 d/yr ≥85°F today · 20 d/yr by 30 yrs out
  • 💨 Wind 1/10 Low
  • 🫁 Air quality 4/10 Moderate 5 unhealthy d/yr today · 6 by 30 yrs out

Nearby sold comps map

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Walkable amenities ~0.75 mi

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Taxation est. · year 1

Rental income
$178,560
− Mortgage interest
−$103,629
− Property taxes
−$4,753
− Insurance
−$9,250
− Repairs & maintenance
−$14,285
− Management
−$14,285
− Depreciation
−$53,818
Taxable loss
−$21,460
combined federal + state — saved on this device
Est. tax savings @ 24.0%
+$5,150
After-tax cash flow
$15,790/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.

Schools (NCES district)

District
Hawthorne
NCES district ID
0616680
Math proficiency
38% ▲ 1.00%
Reading proficiency
47% ▲ 1.00%
Median HH income
$42,657
Composite
38.17/100
National rank
#8589
State rank
#673 of 1400 in CA

Livability — Hawthorne

Score
60/100
State rank
#597
US rank
#19278

Category grades

Amenities C Commute A+ Cost of living F Crime F Employment C+ Housing B Health & safety F User ratings F

Schools grade is shown separately in the Schools card above.

Census & demographics

Census place
Hawthorne, CA
County
Los Angeles County · 9,444,647 people
City population
93,826
Metro
Los Angeles-Long Beach-Anaheim, CA
Population (ZIP)
93,826
Household income
$78,331
Rent vs Own
68.1% rent · 31.9% own
Severe rent burden
6620.0

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
Diverse neighborhood (Simpson 0.63)
Race & ethnicity
Hispanic / Latino 55% Black 23% Two or more races 20% White 11% Asian 7% Native American 2%
Hispanic origin (detail)
Mexican 39% Puerto Rican 1%
Common ancestry
Lithuanian 1% Romanian 1%
Foreign-born
33% · Canada, Vietnam, China
Languages at home
44% English-only · Spanish 46% Other Indo-European 2% Tagalog/Filipino 1%

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
▼ -948.55%
Current HPI
409.3796
Rent YoY
▲ 1.89%
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

Price history

1 event — show timeline
  • 2026-05-30 Listed $1,850,000 CRMLS

Property tax history

+3.1%/yr

Latest (2025): $4,753 · +10.7% YoY. Source: county tax records.

Cash-flow waterfall

monthly

Sold comps — $/sqft

last 12 mo · ≤1 mi

Loading sold comps…