6007 Holmes

Florence-Graham, CA 90001

$739,000B

9 bd · 5.1 ba · 3,392 sqft · Built 1926 · MultiFamily · Active · 145 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,766/mo
• Mortgage (P&I): −$3,875
• Tax + insurance: −$1,232
• HOA: −$0
• Vac / Maint / Mgmt: −$2,051
• Net cashflow: $2,608/mo
• Annual: $31,297/yr
• Cap rate: 10.53%
• Cash-on-cash: 15.13%
• DSCR: 1.67
• 1% rule: 1.32%
• Cash to close: $206,920

Investor read

• This is a 3 × 3-bed/?-bath units multifamily listed at $739k. Condition is rated fair.
• At list price, monthly cash flow is $3k ($31k/yr) — positive. Per door: $869/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($10k rent vs $739k).
• It's been on market 145 days — a 12% lower offer ($650k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $650k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• 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: Lillian Street Elementary (352 students, 97% FRL); Thomas A. Edison Middle (876 students, 99% FRL); Huntington Park Senior High (math 17% / reading 52%, grade F, #618 of 1,170 statewide, top 56%, 1,465 students, 97% FRL) — zoned schools average 97% FRL vs 67% district-wide (30 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1926 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 52 active listings in the ZIP; 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.
• 5 sale attempts since 3y 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 + 3.0% rent growth), your $207k cash investment doubles in ~8 years — after that, you're playing with house money.
• Cap rate 10.5% vs local median 4.2% in Florence-Graham — 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 $9,766/mo this rent would consume 193% of the median local household income ($61k/yr) (locally 2573% 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 145 days. Have you received any prior offers? Is the seller open to a 12% 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 1926 — 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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: exterior walls — Severe weathering and peeling paint
• Major: roof — Rusty and aged
• Major: flooring — Concrete driveway and sidewalk in poor condition
• Major: interior walls/paint — Painted walls with visible wear and tear