1 bd · 1.0 ba ·
468 sqft ·
Built 1925
· MultiFamily
· Active
· 47 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$6,456/mo
Mortgage (P&I)
−$3,561
Tax + insurance
−$400
HOA
−$0
Vac / Maint / Mgmt
−$1,356
Net cashflow
$1,140/mo
Annual
$13,678/yr
Cap rate
8.31%
Cash-on-cash
7.19%
DSCR
1.32
1% rule
0.95%
Cash to close
$190,120
Investor read
This is a 3 × 2-bed/1.3-bath units multifamily listed at $679k.
At list price, monthly cash flow is $1k ($14k/yr) — positive. Per door: $380/mo.
The deal already cash-flows at list — no discount required.
To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $646k (4.9% below list).
It's been on market 47 days — a 3% lower offer ($659k) is reasonable based on typical stale-listing flexibility.
Recommended offer: $646k (4.9% below list) — sets the bar for 1% rule.
Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $20k 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-, 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 1925 — expect roof / HVAC / electrical / plumbing capex.
Market conditions: Rents soft (-2.5%/yr); 172 active listings in the ZIP; 11 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 64% 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.
3 sale attempts 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.
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.
Cap rate 8.3% 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 $6,456/mo this rent would consume 145% of the median local household income ($53k/yr) (locally 7490% 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 47 days. Have you received any prior offers? Is the seller open to a 5% 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?
Built in 1925 — 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?
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?
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.
CashFlowRE · CFR-WXM3530ZXMR13B
· Data 1 week agocashflowre.app · 2026-05-29