Torrance, CA — Rental Investment Analysis

🔴POORnegative cash flow likely

Cap Rate

1.3%

Below average

Monthly Cash Flow

-$4,892

After all expenses

Price-to-Rent

27.3

Overpriced for rent

DSCR

0.20

Fails

📊 Key Metrics

Median Home Price
$1,156,962
Average Rent (3BR)
$3,715/mo
Price-to-Rent Ratio
27.3(high)
1% Rule
0.30%(fails — need 1%+)
Cash-on-Cash Return
-22.1%
Vacancy Rate
8.0%

📈 Market Strength

Unemployment Rate
5.3%(+1% vs national)
Rent Growth (YoY)
+2.9%(national avg)
Population Growth
-1.2% YoY

Assumptions Used

20% down, 7.000000000000001% rate, 30yr, 8% vacancy, 10% maintenance

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Property Tax Rate

0.71%

of assessed value (CA avg)

Median Income

$84,097

household (CA avg)

Rent-to-Income

53%

Stretched

Section 8 Max Rent

$3,715/mo

3BR voucher payment

🏛️ CA Investor Climate

Landlord Friendly

3/10

State Income Tax

Has state tax

Property Tax

0.71% effective

Population Trend

-1.2% (3yr)

🏘️ Best Zip Codes in Torrance for Investors

90504
Cap Rate: 1.9%Cash Flow: -$3,776/mo$1,006,802
90501
Cap Rate: 1.4%Cash Flow: -$4,166/mo$998,967
90503
Cap Rate: 1.2%Cash Flow: -$5,619/mo$1,307,123

All Zip Codes in Torrance

ZipCap RateCash FlowHome PriceRent (3BR)DSCR
905041.9%-$3,776$1,006,802$3,670/mo0.30
905011.4%-$4,166$998,967$3,130/mo0.22
905031.2%-$5,619$1,307,123$3,890/mo0.19
905050.9%-$6,587$1,434,961$3,760/mo0.14