1117-1121 2nd St, San Fernando, CA 91340 | Multifamily Income Property
1117-1121 2nd St, San Fernando, CA 91340
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.
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.
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.
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.
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.
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 |
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.
Model your investment returns and cash flow projections
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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.
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.
- 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
- 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
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.
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.
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" 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.
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
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
For qualified investors · Private overview · PDF access
Investment Due Diligence For 1117-1121 2nd St, San Fernando, CA Income Property
Key questions for informed investment decisions
Things Near 1117-1121 2nd St, San Fernando, CA
San Fernando Recreation Park
0.5 milesSan Fernando Mission
1.2 milesSan Fernando Regional Pool
0.8 milesLas Palmas Park
1.5 milesSan Fernando Shopping Center (with various stores and restaurants)
0.3 milesAbout 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.
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