1419 Malvern Ave

Los Angeles, CA 90006

$899,000B+

10 bd · 8.0 ba · 5,960 sqft · Built 1910 · MultiFamily · Active · 215 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $13,579/mo
• Mortgage (P&I): −$4,714
• Tax + insurance: −$1,025
• HOA: −$0
• Vac / Maint / Mgmt: −$2,852
• Net cashflow: $4,988/mo
• Annual: $59,861/yr
• Cap rate: 12.95%
• Cash-on-cash: 23.78%
• DSCR: 2.06
• 1% rule: 1.51%
• Cash to close: $251,720

Investor read

• This is a 4×1bd/1ba + 4×2bd/1ba units multifamily listed at $899k. Condition is rated fair.
• At list price, monthly cash flow is $5k ($60k/yr) — positive. Per door: $624/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($14k rent vs $899k).
• It's been on market 215 days — a 12% lower offer ($791k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $791k (12.0% 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 $27k of value loss. Plan a longer hold.
• 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: Magnolia Avenue Elementary (550 students, 100% FRL); Berendo Middle (623 students, 98% FRL); West Adams Preparatory High (math 12% / reading 37%, grade F, #826 of 1,170 statewide, top 80%, 1,080 students, 98% FRL) — zoned schools average 99% FRL vs 67% district-wide (31 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 24% at this address vs 42% district-wide (-17 pts) — the specific schools serving this property underperform the Los Angeles Unified average; the district grade overstates school quality for this exact location.
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-0.8%/yr); 194 active listings in the ZIP; 18 comparable units currently listed for rent nearby; rentals lingering (median 65d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 78% of comp listings sitting > 30 days — soft ceiling on asking rent; 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 30y ago; this cycle's ask has dropped $251k (22%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $391k; list at $899k implies a 130% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 0.0% rent growth), your $252k cash investment doubles in ~7 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 215 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 1910 — 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 — Significant wear and tear on the siding.
• Major: roof — Visible signs of wear and potential leaks.
• Major: interior flooring — Significant wear and tear on the flooring.
• Major: interior walls/paint — Significant wear and tear on the walls and paint.
• Major: HVAC/mechanicals — Significant wear and tear on the HVAC and mechanical systems.
• Major: landscaping — Overgrown vegetation and lack of maintenance in the landscaping and curb appeal.