856 W 47th St, Los Angeles, CA 90037

Property Overview

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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.

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Key Property Details

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• Location: 856 W 47th St, Los Angeles, CA 90037
• ‍Lot Size: 7,778 square feet
• ‍Total Building Area: 4,510 square feet
• ‍Units: 4 Total Units (including two ADUs)
• ‍Unit Mix: (4) 3BR / 2BA
• ‍Zoning: LARD2
• ‍Year Built / Renovated: 1914 / 2025
• ‍Rent Control: Yes
  

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Investment Highlights

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• 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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Neighborhood and Accessibility

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Situated in a commuter-friendly pocket of South Los Angeles, 856 W 47th St benefits from convenient access to the 110 and 10 freeway corridors and proximity to Downtown Los Angeles, USC, and the Medical Center District. The surrounding neighborhood supports steady rental demand driven by tenants seeking larger unit layouts at attainable price points, positioning the property for long-term occupancy, reliable income, and continued appreciation.

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For more information and to schedule a viewing, please contact:

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Taylor Avakian

Founder, The Group CRE

First Vice President, Lyon Stahl