856 W 47th St
Multifamily | 4 Units | $343,750/unit
Marketing description
856 W 47th St is a 4-unit multifamily investment located in a high-demand South Los Angeles rental submarket, offering strong in-place yield with meaningful upside through organic rent growth. Built in 1914 and renovated in 2025, the 4,510-square-foot building sits on a 7,778-square-foot lot and features an in-demand unit mix of (4) 3-bedroom/2-bath units averaging 1,106 square feet. Two of the four units are non-rent controlled ADUs, providing ownership flexibility that most rent-controlled fourplexes in this submarket cannot offer. One unit is currently vacant, providing an incoming owner with immediate lease-up opportunity at full market rent of $3,668. Offered at $1,375,000 ($343,750 per unit / $304.88 per square foot), the asset operates at an 8.29% current cap rate with a 9.13 GRM, growing to a 10.04% cap rate and 7.81 GRM at market rents — a path driven entirely by organic lease-up with no capital improvement program required.
Investment highlights
- Strong In-Place Yield: The asset offers an 8.29% current cap rate at $1,375,000, supporting immediate cash flow from acquisition.
- Vacant Unit Delivered at Close — Your Tenant, Your Terms: Unit 858 3/4 is delivered vacant with no RFPA, giving the incoming owner the immediate ability to place a new tenant at full market rent of $3,668. No inherited lease, no relocation exposure — just immediate income on your timeline. At market rent, this single unit alone closes the gap between current and pro forma NOI.
- Built-In Rent Growth with ADU Flexibility: Current rents average $3,139 per unit against a market rate of $3,668 — a 17% gap — with two non-rent controlled ADUs allowing full rent resets at each vacancy.
- Strong Pro Forma Returns: At market rents, NOI reaches $138,073 — a 10.04% cap rate and 12.48% cash-on-cash return with no additional capital required.
- Efficient Expense Profile: Total operating expenses of $29,188 annually ($7,297 per unit) represent just 20% of current EGI, allowing a significant share of rental income to flow through to NOI.
- Live for Free from Day One: An owner-user who occupies the vacant unit collects approximately $9,447 per month from the remaining three units — enough to cover the proposed debt service of $3,801 and generate roughly $5,646 in monthly net cash flow, effectively eliminating their housing cost entirely.
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