3121 Pasadena Ave

South Lake Tahoe, CA 96150

$850,000B-

30 bd · 36.0 ba · 2,879 sqft · Built 1959 · MultiFamily · Active · 64 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $17,457/mo
• Mortgage (P&I): −$4,457
• Tax + insurance: −$1,417
• HOA: −$0
• Vac / Maint / Mgmt: −$3,666
• Net cashflow: $7,917/mo
• Annual: $95,002/yr
• Cap rate: 17.47%
• Cash-on-cash: 39.92%
• DSCR: 2.78
• 1% rule: 2.05%
• Cash to close: $238,000

Investor read

• This is a 6 × 5-bed/6.0-bath units multifamily listed at $850k. Condition is rated poor.
• At list price, monthly cash flow is $8k ($95k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($17k rent vs $850k).
• It's been on market 64 days — a 6% lower offer ($799k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $799k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $26k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#371 in CA) — a middle-class / working-renter tenant base. Strengths: health & safety A+; Watch: schools D-, crime F, commute F.
• Lake Tahoe Unified (town): math 33% / reading 43% proficiency, ranked #786 of 1,400 in CA (top 56%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1959 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.6%/yr); 307 active listings in the ZIP; solid renter incomes; 437 units permitted in El Dorado County in 2024 (0 in 5+ unit buildings).
• El Dorado County population projected to shrink 3% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 9 sale attempts since 11y 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.
• At projected returns (-3.0% appreciation + 3.6% rent growth), your $238k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 17.5% vs local median 2.5% in South Lake Tahoe — 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 $17,457/mo this rent would consume 226% of the median local household income ($93k/yr) (locally 1109% 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 64 days. Have you received any prior offers? Is the seller open to a 6% 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1959 — 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 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?

Repairs flagged (vision-AI assessment)

• Major: exterior siding — Weathered and in need of replacement
• Major: roof — No photos of roof, but appearance suggests significant damage
• Major: interior walls/paint — No photos of interior walls/paint, but appearance suggests significant wear
• Major: HVAC/mechanicals — No photos of HVAC/mechanicals, but appearance suggests outdated or non-functional systems
• Major: landscaping — Overgrown and in need of trimming and maintenance