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1117-1121 2nd St, San Fernando, CA 91340 | Multifamily Income Property

1117-1121 2nd St, San Fernando, CA 91340
Featured Multifamily
REI Capital advisor
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Market Insight

Opportunity

Attractive Entry Cap Rate with Upside Potential: The property generates a Net Operating Income (NOI) of $116,550, translating to a calculated cap rate of 6.66% at the $1.75 million sale price. This provides a solid cash flow foundation from day one. However, as a Class C building built in 1948 with no recorded renovations, there is significant value-add potential through interior and exterior upgrades, which could push the cap rate to 7.5%+ after improvements, enhancing both income and resale value.

Market Insight

Opportunity

Below-Market Price Per Unit with Renovation Arbitrage: At $218,750 per unit, the price point is competitive for the San Fernando market. Comparable renovated Class B/C properties in the area often trade at $250,000–$275,000 per unit. A strategic renovation program—updating kitchens, bathrooms, and common areas—could justify rent increases of 10–20%, driving the value per unit toward the upper end of that range and creating an equity gain of $250,000–$400,000 upon stabilization.

Market Insight

Opportunity

Value-Add Levers Beyond Cosmetic Upgrades: Beyond unit renovations, operational efficiencies offer immediate NOI boosts. The current NOI implies average monthly rents around $1,215 per unit, which is below the San Fernando market average of ~$1,400 for comparable units. Implementing a proactive leasing strategy, sub-metering utilities, and adding low-cost amenities (e.g., laundry facilities, storage units) could increase net income by $15,000–$25,000 annually. Additionally, the 0.17-acre lot may allow for auxiliary income streams, such as leased storage or parking spaces, further enhancing cash flow.

Market Insight

Strength

Prime Positioning in a Supply-Constrained Submarket: San Fernando is characterized by consistent rental demand due to its affordability relative to adjacent Los Angeles neighborhoods and limited new multifamily construction. The R3 zoning (Restricted Density Multiple Dwelling) provides clarity for future modest expansions or reconfigurations, though density is capped. The property’s central location offers accessibility to major corridors (I-5, SR-118) and local amenities, supporting strong tenant retention and occupancy rates historically above 95% for well-maintained assets.

Market Insight

Strength

Amenity Alignment with Market Demands: The inclusion of air conditioning in all units is a critical advantage in Southern California’s climate, making the property competitive with newer builds. However, the parking ratio of 1 space per 1,000 SF (approximately 5 spaces for 8 units) may be tight for larger households. This presents both a challenge and an opportunity: implementing a parking management plan or exploring minor lot reconfiguration could improve tenant satisfaction and allow for premium rents.

$1,750,000
Investment Value
6.66%
CAP Rate
📈 Strong 6.66% cap rate vs market average.
$116,550
Annual NOI
💰 High NOI demonstrates strong operational efficiency.
5,040 SF
Rentable Area
🏢 Optimal size for institutional investors.
$347.22
Price per SF
🎯 Attractive price per SF vs comparable properties.

San Fernando, CA Multifamily Property Overview

  • Multifamily Building located in San Fernando, CA
  • Built in 1948
  • Strong cap rate of 6.66%
  • 5,040 SF of rentable area

Property Details

Year Built 1948 Building Type Multifamily
Total Size 5,040 SF Zoning R3, San Fernando - restricted Density Multiple Dwelling
Parking Spaces N/A Property Tax Rate 1.37%
Cap Rate 6.66% Annual NOI $116,550
Price $1,750,000 Price/SF $347.22
Location San Fernando, CA County Los Angeles
REI Capital advisor
Align Your Capital Strategy

Compare direct ownership against passive CRE platform exposure.

The calculator below frames the capital, risk, and operating burden of acquiring a property directly. REI Capital provides a professionally managed alternative with institutional underwriting and a 9% target annual growth projection.

REI Capital advisor

Model your investment returns and cash flow projections

25%
5.0%
30 years
1.37%
5 years
4.0%
Down Payment Amount: $2,125,000
Loan Amount: $6,375,000
Monthly Mortgage: $34,234
Monthly Tax: $8,365
Total Monthly Payment: $42,599
Monthly Cash Flow: $1,234
Cash on Cash Return: 8.7%
Cap Rate: 6.2%
Debt Coverage Ratio: 1.54x
IRR (5 years): 12.3%
Projected Property Value: $9,854,932
Net Equity at Sale: $4,567,890
📊 Monthly Payment Analysis

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💵 Cash on Cash Return

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🚀 Internal Rate of Return

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🏛️ Property Tax Analysis

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* Calculations are estimates only. Actual returns may vary based on market conditions, financing terms, operating expenses, and other factors. Consult with financial and legal professionals before making investment decisions.

Capital Allocation Comparison

Direct ownership vs. passive CRE platform exposure

Compare the same starting capital across two allocation paths: direct property ownership with operational responsibility, debt exposure, and single-asset concentration, versus a professionally managed REI Capital platform strategy built around institutional underwriting and a 9% target annual growth projection.

Direct Property Ownership
  • Concentrated exposure to one property and market
  • Debt service, refinancing, and rate sensitivity
  • Active leasing, vendor, and asset oversight
  • Vacancy, capex, and maintenance obligations
  • Illiquid exit process with timing risk
  • Transaction costs can compress realized returns
Projected direct ownership outcome Calculating…
VS
REI Capital Platform Exposure
  • Passive exposure without direct operator liability
  • Institutional underwriting and acquisition discipline
  • Professional asset management and reporting
  • Strategy designed to reduce single-asset concentration
  • 9% annual target growth projection for comparison
  • Curated deal flow with a passive capital framework
Projected platform exposure at 9% target Calculating…
Projected difference

Calculating the comparison…

* REI Capital Growth uses a 9% target annual growth projection for comparison only. Returns are not guaranteed and actual results may vary. Consult a financial professional before making investment decisions.

Who This Is Designed For

Built for investors evaluating passive commercial real estate exposure

REI Capital is positioned for investors who want institutional-quality underwriting, disciplined capital deployment, and real estate exposure without managing the asset directly.

Accredited Investors

Deploy capital into a professionally managed real estate strategy without taking on daily operator responsibilities.

Family Offices

Evaluate long-duration CRE exposure with an emphasis on underwriting discipline and capital preservation.

1031 Exchange Buyers

Compare direct replacement ownership against passive alternatives with reduced operational complexity.

High-Income Professionals

Access commercial real estate exposure while preserving time, focus, and liquidity for core priorities.

Where Your NOI Goes Each Month

* Distribution based on current inputs. Actual expenses may vary.

ROI Over Time: Direct Ownership vs REI Capital

* Property return uses a conservative 3.8%–4.2% annual capital appreciation assumption. REI Capital uses a 9% target projection. Returns are not guaranteed.

Deployment Scenario Analysis

Your Down Payment: Direct Ownership vs REI Capital Platform Exposure

Same starting capital. Compare a direct ownership path against passive capital deployment through REI Capital.

Direct ownership (3.8%–4.2% appreciation) REI Capital (9% target)

* "Direct ownership" shows the same down payment growing at the selected 3.8%–4.2% annual capital appreciation rate. "REI Capital" shows the same down payment growing at 9% annual target. Returns are not guaranteed.

Allocation Rationale

Why sophisticated investors choose passive CRE exposure

Direct ownership can be powerful, but it also concentrates capital, time, and execution risk into one asset. Passive CRE exposure helps investors participate in professionally managed real estate strategies while reducing the operational burden of owning the property themselves.

  • Professional underwriting before capital deployment
  • Reduced exposure to single-asset operational demands
  • Access to institutional sourcing and asset management
  • Passive framework built for long-term capital strategy
  • Clearer comparison against direct ownership costs
  • Time-efficient exposure for qualified investors
Investor Materials

A more efficient way to deploy capital

The analysis above is only the starting point. Review the REI Capital investment materials to understand the acquisition strategy, underwriting framework, risk controls, and investor onboarding process behind the 9% target projection.

  • Acquisition strategy & deal flow
  • Underwriting and risk framework
  • Platform team and execution process
  • Investor qualification and next steps
Access Investment Materials

For qualified investors · Private overview · PDF access

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Investment Due Diligence For 1117-1121 2nd St, San Fernando, CA Income Property

Key questions for informed investment decisions

What is the core investment thesis for this property? +
This property presents a compelling value-add opportunity in a stable multifamily market. The core thesis is to acquire an 8-unit, cash-flowing Class C apartment building at a competitive price point ($218,750 per unit) and implement a strategic renovation and operational improvement plan to significantly increase rental income, property value, and investor returns. The asset offers a strong foundation with a current 6.66% cap rate and is positioned in San Fernando, which has consistent rental demand and limited new supply. By addressing deferred maintenance, modernizing units, and optimizing operations, investors can drive the property toward Class B- performance, achieving substantial equity appreciation and enhanced cash flow over a 3-5 year hold period.
What are the key financial metrics and what upside potential exists? +
The property is listed at a sale price of $1,750,000 with a Net Operating Income (NOI) of $116,550, resulting in a going-in cap rate of 6.66%. The price per square foot is approximately $347. Financially, the significant upside lies in increasing the NOI through rent growth and expense management. Current implied rents are approximately $1,215 per month, below the San Fernando market average of ~$1,400 for comparable units. Strategic renovations and operational efficiencies (like sub-metering utilities) could increase NOI by an estimated $15,000-$25,000 annually. This could push the stabilized cap rate to 7.5% or higher, and increase the property's value by $250,000-$400,000 upon resale, targeting a per-unit value in the $250,000-$275,000 range.
How does the location and zoning impact the investment? +
The property is located in the heart of San Fernando, CA (91340), benefiting from established infrastructure, accessibility to major highways (I-5, SR-118), and consistent demand for affordable rental housing relative to Los Angeles. The zoning is R3 (Restricted Density Multiple Dwelling), which provides clear parameters for the current low-rise apartment use but limits significant density increases. This zoning reduces the threat of new competitive supply but also caps extensive redevelopment potential. The location is a key strength, supporting high occupancy rates and tenant retention, making it a stable asset for long-term holds.
What are the primary risks associated with this investment? +
The main risks stem from the property's age and condition. Built in 1948 with no recorded renovations, it likely has deferred maintenance in structural, plumbing, and electrical systems. Investors should budget 5-10% of the purchase price ($87,500 - $175,000) for immediate capital expenditures. The parking ratio (1 space per 1,000 SF, roughly 5 spaces for 8 units) may be tight and could affect tenant satisfaction or limit rent premiums. Additionally, while the San Fernando market is stable, broader economic downturns could slow rent growth. However, the property's affordable positioning provides some insulation. The R3 zoning, while limiting density, is a known factor that reduces speculative development risk.
What specific value-add opportunities can be executed? +
Value-add opportunities are multi-faceted: * **Unit Renovations:** Modernizing kitchens, bathrooms, flooring, and lighting in all 8 units to justify rent increases of 10-20%. * **Operational Efficiency:** Implementing sub-metering for utilities to reduce owner-paid expenses, renegotiating service contracts, and introducing a professional property management system. * **Amenity & Income Additions:** Installing coin-operated laundry facilities, optimizing the 0.17-acre lot for additional storage or dedicated parking spaces, and enhancing curb appeal. * **Leasing Strategy:** Proactively managing turnover and implementing a data-driven rental pricing strategy to achieve market-rate rents. * **Systems Upgrade:** Addressing critical building systems (roof, HVAC, plumbing) to reduce long-term maintenance costs and improve reliability. Executing these levers in tandem can drive the projected 20-25% total return on investment.

Things Near 1117-1121 2nd St, San Fernando, CA

San Fernando Recreation Park

0.5 miles

San Fernando Mission

1.2 miles

San Fernando Regional Pool

0.8 miles

Las Palmas Park

1.5 miles

San Fernando Shopping Center (with various stores and restaurants)

0.3 miles

About San Fernando

San Fernando, CA is a stable investment market with a median household income of $55,192 and relatively low poverty rate of 13.8%. This market tends to attract a diverse population, with 46.7% of residents identifying as Hispanic, 27.2% as White, and 16.7% as Other. The foreign-born rate of 34.6% suggests a strong international influence. With a median age of 32.2 and an average commute time of 26.6 minutes, this city offers a relatively young and mobile workforce. The top industries, including Information, Public Administration, and Transportation & Warehousing, & Utilities, provide a solid foundation for employment. However, the 13.8% poverty rate and a GINI coefficient of 0.387 indicate some income inequality, which could pose challenges for investors. On the other hand, the high health insurance coverage rate of 85.9% and a homeownership rate of 57.0% suggest a relatively stable and secure population. Overall, San Fernando, CA presents a mix of opportunities and challenges for investors, with its diverse population, relatively low poverty rate, and strong industries offering potential for growth, but also requiring careful consideration of the local economic and social dynamics. With a population of 23,830 and a median property value of $285,500, this market is worth exploring for those looking to invest in a stable and diverse community.

Population 23,830
Median Age 32.2
Avg. Household Income $55,192
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