5850 W Olympic

Los Angeles, CA 90036

$3,950,000C+

33 bd · 25.3 ba · 2,304 sqft · Built 1949 · MultiFamily · Active · 68 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $44,284/mo
• Mortgage (P&I): −$20,714
• Tax + insurance: −$6,583
• HOA: −$0
• Vac / Maint / Mgmt: −$9,300
• Net cashflow: $7,687/mo
• Annual: $92,242/yr
• Cap rate: 8.63%
• Cash-on-cash: 8.34%
• DSCR: 1.37
• 1% rule: 1.12%
• Cash to close: $1,106,000

Investor read

• This is a 11 × 3-bed/?-bath units multifamily listed at $3.95M. Condition is rated fair.
• At list price, monthly cash flow is $8k ($92k/yr) — positive. Per door: $699/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($44k rent vs $3.95M).
• It's been on market 68 days — a 6% lower offer ($3.71M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $3.71M (6.0% below list) — sets the bar for market timing.
• In year one you build about $128k of equity ($27k loan paydown + $101k appreciation (2.5% local appreciation)).
• Location reads 68/100 on livability (#273 in CA) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment B; Watch: health & safety C-, schools D+, crime F.
• Los Angeles Unified (urban): math 29% / reading 54% proficiency, ranked #223 of 517 in CA (top 43%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 67% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1949 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-1.1%/yr); 94 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.
• At projected returns (2.5% appreciation + 0.0% rent growth), your $1.11M cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$321k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 8.6% vs local median 2.1% in Los Angeles — 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 $44,284/mo this rent would consume 484% of the median local household income ($110k/yr) (locally 4924% 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 68 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 1949 — 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: roof — The roof appears to be in poor condition, with visible wear and tear.
• Moderate: exterior walls — The exterior walls are in fair condition, with some discoloration and wear visible.
• Moderate: HVAC/mechanicals — The HVAC and mechanical systems appear to be in fair condition, with some wear and tear visible.