14134 Orizaba Ave, Paramount, CA 90723 — -0.3% Cash-on-Cash

About this property

14134 Orizaba Ave is a detached two-story townhouse in Paramount offering 1,719 sq ft across three bedrooms and three bathrooms.

The layout is split across two levels in a way that works for tenants and owner-occupants alike. The main floor opens into a step-down living room with direct patio access — a practical outdoor space that adds functional square footage without showing up in the official count. Upstairs, two Jack-and-Jill bedrooms share a bath, while the primary suite runs with vaulted ceilings and its own en-suite, a configuration that typically commands a rent premium over standard three-bed layouts.

The property has been non-owner occupied, per public records, which means it's been running as a rental — useful context for underwriting. It's been on the market 388 days at the same list price, with no recorded price reduction from the original ask. That's a long time without a cut, and it warrants scrutiny: either the seller has a high floor, or the market has been pricing in the renovation potential the listing description references. The attached two-car garage and upstairs laundry are genuine positives for tenant retention. The lot is listed at just under 0.8 acres, though that figure likely reflects the broader parcel associated with the townhouse complex rather than an exclusive lot.

The investment case

A negative $30 monthly cash flow at a $549,000 purchase price is the defining financial reality here — nearly breakeven, but not quite.

List Price

$549,000

Monthly Payment (PITI+HOA)

$3,835

Principal & Interest

$2,741

Property Tax

$691

Insurance

$183

HOA

$220

PMI

$0

Est. Monthly Rent

$3,805

Estimated rent based on automated valuation of comparable listings.

Cash-on-Cash Return

-0.3%

Cap Rate

7.4%

Monthly Cash Flow

-$30

Gross Rent Multiplier

12.0

DSCR

1.2

At a 20% down payment and the current 30-year fixed rate of 6.55%, the all-in monthly payment lands at $3,835: principal and interest of $2,741, property taxes of $691, insurance of $183, and an HOA fee of $220. Estimated monthly rent comes in at $3,805, leaving a $30 monthly shortfall. Cash-on-cash return works out to negative 0.3% — essentially flat against invested capital on a monthly basis.

The more compelling number is the cap rate: 7.4%, driven by a net operating income of $3,402 per month. That's a real yield on asset value, and it's meaningfully above what many comparable Southern California markets produce. The gross rent multiplier of 12.0 and a debt service coverage ratio of 1.2 both read as reasonable for this price tier — the DSCR above 1.0 means the rent covers the mortgage payment with room to spare, even if total cash flow after taxes and insurance goes slightly negative.

The cash-on-cash return of negative 0.3% is slightly below the city average of 0.0%, which itself signals that Paramount is not a strong cash-flow market at current rates and prices. This property isn't an outlier — it sits right at the margin. Figures exclude depreciation tax benefits, which vary by individual tax situation. An investor who can capture depreciation may find the after-tax picture meaningfully different from the raw cash flow number.

The investment case here isn't monthly income — it's yield on asset value combined with long-term compounding.

Annual return outlook

The 5-year total ROI estimate of 7.2% is built almost entirely on appreciation and mortgage paydown, not cash flow.

Breaking down the three return components: cash flow contributes negative 0.3% annually, appreciation contributes an estimated 3.8% per year, and mortgage paydown adds another 3.8%. That paydown figure reflects equity accumulation as the loan amortizes — a return that doesn't show up in the bank account monthly but builds real net worth over time.

The appreciation estimate of approximately 3.8% annually is modeled, not derived from recorded transaction data, so it carries uncertainty. Southern California residential real estate has historically supported that kind of annualized growth over multi-decade periods, but shorter windows can diverge sharply in either direction. An investor underwriting this deal should stress-test the appreciation assumption: at 2% annual appreciation, the total ROI drops to roughly 5.5%; at 0%, the deal is essentially a mortgage paydown play returning around 3.5% annually before tax effects.

What the 5-year picture makes clear is that patience is the thesis. The negative monthly cash flow is a carrying cost, not a structural flaw — and at $30 per month, it's a modest one. Investors who need immediate income from their capital will find this property a poor fit. Those with a 5-to-10-year horizon and tolerance for flat monthly returns are the natural buyers.

How it compares to nearby for-sale listings

Five active 3-bedroom listings in the Paramount area provide pricing context, with a comp median of $578,900.

At $549,000, this property sits roughly $30,000 below the for-sale comp median of $578,900 — a modest discount that looks more interesting when you factor in size. At 1,719 sq ft, this is the largest property in the comp set by a meaningful margin. The closest size comp, a 1,630 sq ft listing on Motz St, is listed at $639,000 — implying a price-per-square-foot of $392 versus $319 for this property. That's a 19% discount on a per-square-foot basis, which is the most honest way to read the pricing gap.

The 388 days on market is the outlier signal that demands attention. Every other active comp has been on the market for 110 days or fewer, with two listings under a week old. A property sitting nearly 13 months without a price cut either has a motivated seller with a hard floor, or it's been absorbing market feedback without adjusting. Neither reading is inherently negative for a buyer — it simply means negotiating leverage may exist that the list price doesn't reflect.

The $900,000 listing on Walnut Ave is an outlier at $827 per square foot for a 1,088 sq ft property, likely reflecting land value or a different product type. Stripping that out, the remaining comps cluster between $319 and $455 per square foot, and this property sits at the lower end of that range.

Rental demand in this zip

No active rental comps were identified in ZIP 90723 for 3-bedroom properties, which limits confidence in the rent projection.

The estimated monthly rent of $3,805 is a modeled figure in the absence of direct comparable rental data for this zip code and bedroom count. That's a meaningful caveat. Without active rental listings to anchor the estimate, the cash flow projection — already thin at negative $30 per month — carries more uncertainty than the numbers alone suggest.

The practical implication: a rent outcome 5% below the estimate ($3,615/month) would push monthly cash flow to roughly negative $220 and the cash-on-cash return to approximately negative 2%. A 5% upside scenario ($3,995/month) would flip the property to positive cash flow of about $160 per month. The deal's monthly income story is sensitive to where rent actually lands, and without local comp data to anchor it, that range is real.

What partially offsets the uncertainty is the property's physical profile. A 1,719 sq ft detached townhouse with a two-car garage, private patio, and upstairs laundry is a well-configured rental product. Those features tend to reduce vacancy and support rent retention over time. The non-owner-occupied status in public records also suggests the property has functioned as a rental before, though prior lease terms aren't available to verify the estimate.

Investors should treat the $3,805 rent estimate as a midpoint, not a floor, until local rental activity provides a firmer anchor.

Who this property suits + risks to weigh

This property fits a patient, appreciation-oriented investor who can absorb minimal negative carry and doesn't need immediate income from the asset.

Best fit

The investor who makes sense here is someone with a 5-to-10-year horizon, comfortable with the local market, and underwriting appreciation as the primary return driver. The 7.4% cap rate is a genuine asset-level yield — competitive for Southern California — and the DSCR of 1.2 means the rent covers the debt service without stress. At negative $30 per month, the out-of-pocket carrying cost is negligible. A buyer who can deploy the $109,800 down payment and absorb $360 per year in negative cash flow while the asset appreciates and the mortgage amortizes is the natural fit.

The property also has renovation upside baked into the listing language. A buyer willing to update the kitchen and finishes could push rent above the current $3,805 estimate and potentially tip the monthly cash flow positive without a major capital outlay.

Risks to weigh

The 388-day DOM is the loudest risk signal. It raises questions about what buyers have found — or haven't liked — during inspections over the past year. Any offer should include a thorough inspection, and the extended market time gives a buyer legitimate grounds to negotiate below list price.

The HOA fee of $220 per month is a fixed cost that doesn't flex with rent, and it's the line item most likely to increase over time. HOA financials and reserve fund status are worth requesting before close. The rent estimate also carries real uncertainty given the absence of local rental comps, and any underwriting that treats $3,805 as a guaranteed outcome is optimistic. The appreciation assumption of approximately 3.8% annually is modeled, not recorded — a softer market could compress the total 5-year return significantly.