5529 Dairy Ave

Long Beach, CA 90805

$3,350,000D

14 bd · 9.0 ba · 4,872 sqft · Built 1964 · MultiFamily · Active · 76 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $28,070/mo
• Mortgage (P&I): −$17,568
• Tax + insurance: −$3,227
• HOA: −$0
• Vac / Maint / Mgmt: −$5,895
• Net cashflow: $1,380/mo
• Annual: $16,562/yr
• Cap rate: 6.79%
• Cash-on-cash: 1.77%
• DSCR: 1.08
• 1% rule: 0.84%
• Cash to close: $938,000

Investor read

• This is a 10 × 15-bed/10.0-bath units multifamily listed at $3.35M.
• At list price, monthly cash flow is $1k ($17k/yr) — positive. Per door: $138/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 $2.81M (16.2% below list).
• It's been on market 76 days — a 6% lower offer ($3.15M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.81M (16.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $23k of loan paydown is wiped out by about $100k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#319 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.
• Long Beach Unified (urban): math 34% / reading 50% proficiency, ranked #216 of 517 in CA (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Addams Elementary (math 19%, 775 students, 73% FRL); Lindsey Academy (math 16% / reading 28%, grade F, #388 of 498 statewide, top 80%, 725 students, 70% FRL); Jordan High (math 12% / reading 35%, grade F, #935 of 1,170 statewide, top 80%, 2,241 students, 66% FRL).
• Zoned-school proficiency averages 23% at this address vs 42% district-wide (-19 pts) — the specific schools serving this property underperform the Long Beach Unified average; the district grade overstates school quality for this exact location.
• Market conditions: Rents rising (+1.9%/yr); 99 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.
• 8 sale attempts since 15y ago; this cycle's ask has dropped $200k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $710k; list at $3.35M implies a 372% gain — meaningful room to come down on a strong offer.
• Cap rate 6.8% vs local median 1.9% in Long Beach — 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 $28,070/mo this rent would consume 459% of the median local household income ($73k/yr) (locally 4834% 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 76 days. Have you received any prior offers? Is the seller open to a 16% 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 1964 — 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.
• 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?