Listed by VKREA Commercial
$1,500,000
5+1 South Gate
Details
Property Type Multifamily
Sub Type Apartment Building
Units 6
Cap Rate 6.03%
NOI $90,485
Occupancy 100%
Pro-Forma Cap Rate 8.47%
Pro-Forma NOI $126,987
Class C
Year Built 1929
Year Renovated 2024
Buildings 4
Stories 2
Lot Size (SqFt) 7,800 - 8,000
Parking Spaces 10 spaces
Investment Type Stabilized
6% cap rate great unit mix
Marketing description
Investment Opportunity: 5+1 Unit Multifamily Property in South Gate, CA
Prime Value-Add Opportunity with Immediate Cash Flow & Rental Upside
Seller has done updates to the building as of June 2025.
All tenants are month to month. New photos of White exterior paint of entire building posted. This 5+1 nonconforming unit multifamily property in South Gate, CA, presents an excellent value-add investment in a high-demand rental market within Los Angeles County. The property is fully occupied, generating consistent cash flow, and offers significant rental upside with all tenants on month-to-month leases.
The property provides an immediate opportunity to increase rental income. With all units currently leased on a month-to-month basis, an investor can adjust rents to align with market rates, unlocking the property’s full income potential.
The South Gate rental market remains strong, benefiting from low vacancy rates and high tenant demand. The property’s strategic location offers easy access to Downtown Los Angeles, major employment centers, and key transportation routes, making it an attractive choice for tenants.
Stability and Growth Potential
The tenant base includes all tenants on month-to-month terms. The unit mix of spacious (4) two- bedroom and (2) one-bedroom apartments caters to a broad range of renters, ensuring consistent demand.
There is also upside potential in not only raising rents but the possibility of converting garages into units. There are a total of 5 one car garages.
Investment highlights
Total Units: 6 (5 legally permitted units + 1 non-conforming unit)
Occupancy: 100%
Financial Highlights
Gross Scheduled Income: $128,808 annually
Estimated Net Operating Income (NOI): $90,469
Capitalization Rate (Current): 6.00%
Operating Expense Ratio: 26.8% of gross income
Listing Contacts
Listed by VKREA Commercial
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$90,485.00
$7,540.42/mo
Valuation Metrics
0
DSCR
6.03%
Cap Rate
6.03%
ROI
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