1050 12th St

Santa Monica, CA 90403

$3,800,000D

10 bd · 10.0 ba · 7,068 sqft · Built 1957 · MultiFamily · Active · 363 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $30,395/mo
• Mortgage (P&I): −$19,928
• Tax + insurance: −$4,565
• HOA: −$0
• Vac / Maint / Mgmt: −$6,383
• Net cashflow: $-480/mo
• Annual: $-5,765/yr
• Cap rate: 6.14%
• Cash-on-cash: -0.54%
• DSCR: 0.98
• 1% rule: 0.80%
• Cash to close: $1,064,000

Investor read

• This is a 5×1bd/1ba + 5×2bd/1ba units multifamily listed at $3.80M.
• At list price, monthly cash flow is $-480 ($-6k/yr) — negative. Per door: $-48/mo.
• To cash-flow at today's rent, offer at most $3.72M (2.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $3.04M (20.0% below list).
• It's been on market 363 days — a 12% lower offer ($3.34M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $3.04M (20.0% below list) — sets the bar for 1% rule.
• In year one you build about $22k of equity ($26k loan paydown + $-4k appreciation (-0.1% local appreciation)).
• Location reads 72/100 on livability (#178 in CA) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: health & safety C-, crime F, cost of living F.
• Santa Monica-Malibu Unified (urban): math 61% / reading 74% proficiency, ranked #123 of 1,400 in CA (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Roosevelt Elementary (594 students, 18% FRL); Lincoln Middle (math 24% / reading 24%, grade F, #277 of 498 statewide, top 73%, 854 students, 22% FRL); Santa Monica High (2,678 students, 30% FRL) — zoned schools at 23% FRL track the district average.
• Zoned-school proficiency averages 24% at this address vs 68% district-wide (-43 pts) — the specific schools serving this property underperform the Santa Monica-Malibu Unified average; the district grade overstates school quality for this exact location.
• Watch-outs: built in 1957 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-0.1%/yr); 91 active listings in the ZIP; 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.
• 2 sale attempts since 22y 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 $1.97M; list at $3.80M implies a 93% gain — meaningful room to come down on a strong offer.
• By year 8, paydown + projected appreciation supports a ~$254k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 363 days. Have you received any prior offers? Is the seller open to a 20% 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 1957 — 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 A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?