5913 Greenwood Ave

Commerce, CA 90040

$2,700,000C+

24 bd · 12.0 ba · 10,767 sqft · Built 1965 · MultiFamily · Active · 69 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $27,182/mo
• Mortgage (P&I): −$14,159
• Tax + insurance: −$3,778
• HOA: −$0
• Vac / Maint / Mgmt: −$5,708
• Net cashflow: $3,537/mo
• Annual: $42,440/yr
• Cap rate: 7.86%
• Cash-on-cash: 5.61%
• DSCR: 1.25
• 1% rule: 1.01%
• Cash to close: $756,000

Investor read

• This is a 12 × 2-bed/1.0-bath units multifamily listed at $2.70M.
• At list price, monthly cash flow is $4k ($42k/yr) — positive. Per door: $295/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($27k rent vs $2.70M).
• It's been on market 69 days — a 6% lower offer ($2.54M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.54M (6.0% below list) — sets the bar for market timing.
• In year one you build about $28k of equity ($19k loan paydown + $9k appreciation (0.3% local appreciation)).
• Location reads 54/100 on livability (#894 in CA) — a working-class tenant base; expect higher turnover. Strengths: commute A+; Watch: schools F, crime F, amenities F.
• Montebello Unified (suburban): math 17% / reading 32% proficiency, ranked #419 of 517 in CA (top 81%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 76% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 8 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 26y ago; this cycle's ask has dropped $300k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $2.00M; 35% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (0.3% appreciation + 3.0% rent growth), your $756k cash investment doubles in ~8 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$179k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• 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 69 days. Have you received any prior offers? Is the seller open to a 6% 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 1965 — 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 F-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?