1808 Franklin Canyon Dr

Los Angeles, CA 90210

$2,795,000D

4 bd · 3.0 ba · 4,335 sqft · Built 1985 · SingleFamily · Active · 151 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,742/mo
• Mortgage (P&I): −$14,657
• Tax + insurance: −$2,267
• HOA: −$0
• Vac / Maint / Mgmt: −$2,256
• Net cashflow: $-8,438/mo
• Annual: $-101,256/yr
• Cap rate: 2.70%
• Cash-on-cash: -12.84%
• DSCR: 0.43
• 1% rule: 0.38%
• Cash to close: $782,600

Investor read

• This is a 4-bed/3.0-bath single-family listed at $2.79M.
• At list price, monthly cash flow is $-8k ($-101k/yr) — negative.
• To cash-flow at today's rent, offer at most $1.30M (53.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.07M (61.6% below list).
• It's been on market 151 days — a 12% lower offer ($2.46M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.07M (61.6% below list) — sets the bar for 1% rule.
• In year one you build about $286k of equity ($19k loan paydown + $267k appreciation (9.6% 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: flood insurance adds $66/mo.
• Market conditions: Rents rising (+1.7%/yr); 308 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 55% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 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.
• 4 sale attempts since 29y 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.
• Current owner paid $660k; list at $2.79M implies a 323% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$460k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk; major wildfire risk; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 2.7% vs local median 2.1% in Los Angeles — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
• At $10,742/mo this rent would consume 69% of the median local household income ($188k/yr) (locally 911% 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 151 days. Have you received any prior offers? Is the seller open to a 62% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?
• 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?
• 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?