10372 Ashton Ave

Los Angeles, CA 90024

$1,950,000D

16 bd · 16.0 ba · 3,064 sqft · Built 1940 · MultiFamily · Active · 44 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $14,650/mo
• Mortgage (P&I): −$10,226
• Tax + insurance: −$3,250
• HOA: −$0
• Vac / Maint / Mgmt: −$3,076
• Net cashflow: $-1,903/mo
• Annual: $-22,830/yr
• Cap rate: 5.12%
• Cash-on-cash: -4.18%
• DSCR: 0.81
• 1% rule: 0.75%
• Cash to close: $546,000

Investor read

• This is a 2×2bd/1ba + 2×1bd/1ba units multifamily listed at $1.95M. Condition is rated fair.
• At list price, monthly cash flow is $-2k ($-23k/yr) — negative. Per door: $-476/mo.
• To cash-flow at today's rent, offer at most $1.67M (14.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.47M (24.9% below list).
• It's been on market 44 days — a 3% lower offer ($1.89M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.47M (24.9% below list) — sets the bar for 1% rule.
• In year one you build about $53k of equity ($13k loan paydown + $39k appreciation (2.0% 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-, crime F, cost of living 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.
• Zoned schools: Fairburn Avenue Elementary (436 students, 20% FRL); Emerson Community Charter (492 students, 51% FRL, charter); University High School Charter (math 40% / reading 66%, grade C-, #285 of 1,170 statewide, top 25%, 1,338 students, 72% FRL, charter) — zoned schools average 47% FRL vs 67% district-wide (20 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents flat; 230 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.
• 3 sale attempts; this cycle's ask has dropped $145k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 3, paydown + projected appreciation supports a ~$134k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• 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 5.1% 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 $14,650/mo this rent would consume 230% of the median local household income ($77k/yr) (locally 5508% 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?
• It's been on market 44 days. Have you received any prior offers? Is the seller open to a 25% 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 1940 — 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?

Repairs flagged (vision-AI assessment)

• Moderate: Exterior siding — Weathered and in need of repainting
• Minor: Landscaping — Some plants appear overgrown