9015 Owensmouth Ave

Los Angeles, CA 91304

$5,160,000B

70 bd · 40.0 ba · 24,330 sqft · Built 1972 · MultiFamily · Active · 175 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $63,714/mo
• Mortgage (P&I): −$27,060
• Tax + insurance: −$4,442
• HOA: −$0
• Vac / Maint / Mgmt: −$13,380
• Net cashflow: $18,832/mo
• Annual: $225,985/yr
• Cap rate: 10.67%
• Cash-on-cash: 15.64%
• DSCR: 1.70
• 1% rule: 1.23%
• Cash to close: $1,444,800

Investor read

• This is a 10×4bd/2.0ba + 10×3bd/1.5ba units multifamily listed at $5.16M. Condition is rated fair.
• At list price, monthly cash flow is $19k ($226k/yr) — positive. Per door: $942/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($64k rent vs $5.16M).
• It's been on market 175 days — a 12% lower offer ($4.54M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $4.54M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $36k of loan paydown is wiped out by about $155k 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: Nevada Avenue Elementary (353 students, 85% FRL); Ernest Lawrence Middle (1,073 students, 68% FRL); Chatsworth Charter High (math 37% / reading 52%, grade F, #434 of 1,170 statewide, top 39%, 1,696 students, 68% FRL, charter).
• Market conditions: Rents falling (-3.2%/yr); 183 active listings in the ZIP; solid renter incomes; 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.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 10.7% vs local median 2.2% 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.
• This rent per unit runs 42% of the median local income ($90k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 175 days. Have you received any prior offers? Is the seller open to a 12% 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1972 — 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?

Repairs flagged (vision-AI assessment)

• Major: roof — The independent satellite image shows significant damage and discoloration.
• Major: exterior — The independent satellite image shows significant damage and discoloration.
• Major: HVAC units — The listing photos show old units.
• Major: interior walls — The listing photos show peeling paint.