4516 St Charles Pl

Los Angeles, CA 90019

$985,000D

7 bd · 3.0 ba · 3,097 sqft · Built 1921 · MultiFamily · Active · 444 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,612/mo
• Mortgage (P&I): −$5,165
• Tax + insurance: −$1,172
• HOA: −$0
• Vac / Maint / Mgmt: −$1,599
• Net cashflow: $-324/mo
• Annual: $-3,883/yr
• Cap rate: 5.90%
• Cash-on-cash: -1.41%
• DSCR: 0.94
• 1% rule: 0.77%
• Cash to close: $275,800

Investor read

• This is a 1×3.0bd/1.5ba + 1×2.0bd/1.0ba units multifamily listed at $985k.
• At list price, monthly cash flow is $-324 ($-4k/yr) — negative. Per door: $-162/mo.
• To cash-flow at today's rent, offer at most $928k (5.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $761k (22.7% below list).
• It's been on market 444 days — a 12% lower offer ($867k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $761k (22.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $30k 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: Alta Loma Elementary (386 students, 96% FRL); Johnnie Cochran Jr. Middle (545 students, 99% FRL); Los Angeles Senior High (math 16% / reading 43%, grade F, #750 of 1,170 statewide, top 66%, 1,043 students, 95% FRL) — zoned schools average 97% FRL vs 67% district-wide (29 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 30% at this address vs 42% district-wide (-12 pts) — the specific schools serving this property underperform the Los Angeles Unified average; the district grade overstates school quality for this exact location.
• Watch-outs: built in 1921 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-0.5%/yr); 206 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% 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.
• 25 sale attempts since 15y ago; this cycle's ask has dropped $165k (14%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $590k; list at $985k implies a 67% gain — meaningful room to come down on a strong offer.
• 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 5.9% 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.

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 444 days. Have you received any prior offers? Is the seller open to a 23% 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 1921 — 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 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?