1920 Canal St

Los Angeles, CA 90291

$1,595,000D

3 bd · 3.0 ba · 2,012 sqft · Built 1979 · MultiFamily · Active · 93 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,843/mo
• Mortgage (P&I): −$8,364
• Tax + insurance: −$2,282
• HOA: −$0
• Vac / Maint / Mgmt: −$2,277
• Net cashflow: $-2,080/mo
• Annual: $-24,965/yr
• Cap rate: 5.05%
• Cash-on-cash: -4.44%
• DSCR: 0.80
• 1% rule: 0.68%
• Cash to close: $446,600

Investor read

• This is a 2 × 3-bed/3.0-bath units multifamily listed at $1.59M.
• At list price, monthly cash flow is $-2k ($-25k/yr) — negative. Per door: $-1k/mo.
• To cash-flow at today's rent, offer at most $1.23M (23.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.08M (32.0% below list).
• It's been on market 93 days — a 9% lower offer ($1.45M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.08M (32.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-0.8%/yr); year-one equity from $11k of loan paydown is wiped out by about $13k 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: Westminster Avenue Elementary (335 students, 78% FRL); Mark Twain Middle (896 students, 55% FRL); Venice Senior High (math 33% / reading 64%, grade D, #373 of 1,170 statewide, top 32%, 2,107 students, 69% FRL) — zoned schools at 67% FRL track the district average.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: Rents flat; 227 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 52% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 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 16y 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.
• Current owner paid $954k; list at $1.59M implies a 67% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.0% 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 $10,843/mo this rent would consume 106% of the median local household income ($123k/yr) (locally 2471% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 93 days. Have you received any prior offers? Is the seller open to a 32% 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 1979 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.