4932 Lennox

Lennox, CA 90304

$1,500,000B-

120 bd · 64.0 ba · 6,836 sqft · Built 1961 · MultiFamily · Active · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $21,286/mo
• Mortgage (P&I): −$7,866
• Tax + insurance: −$2,834
• HOA: −$0
• Vac / Maint / Mgmt: −$4,470
• Net cashflow: $6,116/mo
• Annual: $73,388/yr
• Cap rate: 11.19%
• Cash-on-cash: 17.47%
• DSCR: 1.78
• 1% rule: 1.42%
• Cash to close: $420,000

Investor read

• This is a 8 × 2-bed/1.0-bath units multifamily listed at $1.50M.
• At list price, monthly cash flow is $6k ($73k/yr) — positive. Per door: $764/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($21k rent vs $1.50M).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $10k of loan paydown is wiped out by about $45k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#580 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+, housing B; Watch: schools D+, employment D+, amenities D.
• Lennox (suburban): math 36% / reading 44% proficiency, ranked #771 of 1,400 in CA (top 55%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 83% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents flat; 24 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.
• 2 sale attempts; this cycle's ask is 68082% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $775k; list at $1.50M implies a 94% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 0.3% rent growth), your $420k cash investment doubles in ~10 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.
• At $21,286/mo this rent would consume 398% of the median local household income ($64k/yr) (locally 1761% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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 1961 — 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.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.