Duplex with Assumable FHA
For Sale
$998,800
1120 Locust Street, San Jose, CA 95110
R2-zoned duplex offering rental income potential near downtown San Jose, transit, parks, shopping, dining, and freeway connections.
Property Size1,474 SF
Days on Market159
Property Features for 1120 Locust Street
General Information
Standard status
Active
Size
1,474 SF
Property subtype
Multi Family Home
Zoning
R2
Additional Details
Highway Access
Yes
Building Details
Building Size
1,474 SF
Year Built
1955
Listing Agency:
Acquire Inc.
(408) 455-4007
Listed By:
Robert Garcia · License #01408257
(408) 455-4007
Source:
Brucebaldwin
Added: Mar 27
Changed: Aug 31
Last Checked: Aug 4 at 7:56AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Acquire Inc.
Investment Insights
Based on property information with market context.
Built in 1955, this duplex at 1120 Locust Street provides a residential income property configuration in San Jose. The property is zoned R2 and is positioned for rental use, with the source information also identifying a flexible live-one/rent-one arrangement. An assumable FHA loan is available to a qualified buyer.
The property is near downtown San Jose, major employers, public transit, parks, shopping, dining, and everyday services. Walkable surroundings and access to freeway connections add convenience for residents. The combination of an established duplex structure, residential zoning, and nearby employment and transportation amenities supports both investor and owner-occupant use.
The property is near downtown San Jose, major employers, public transit, parks, shopping, dining, and everyday services. Walkable surroundings and access to freeway connections add convenience for residents. The combination of an established duplex structure, residential zoning, and nearby employment and transportation amenities supports both investor and owner-occupant use.
Key Highlights
- Duplex property at 1120 Locust Street, San Jose, CA 95110
- Assumable FHA loan available to a buyer who qualifies
- R2 zoning supports the residential property configuration
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$33,188
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.32%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$663,760
$663.8K
Cap Rate 7%
$474,114
$474.1K
Cap Rate 9%
$368,756
$368.8K
Market Conditions
NOI Build-Up for 1,474 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$49.5K $33.60/SF
− Vacancy
−$2.1K −$1.43/SF
EGI
$47.4K $32.17/SF
− OpEx
−$14.2K −$9.65/SF
NOI
$33.2K $22.52/SF
Area
San Jose, CA
Vacancy
4.27%
Lease Rate
$33.60 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$663,760
Cap Rate 7%
$474,114
Cap Rate 9%
$368,756
Alternative Uses
Best Use
Multifamily LT 5
$474.1K
$414.9K – $553.1K
NOI $33,188 @ 7.0% cap · market cap 3.32%
Second Best
Apartment 5plus
$438.0K
$383.2K – $511.0K
NOI $30,659 @ 7.0% cap · market cap 3.07%
Theoretical Best
Office A
$890.2K
$778.9K – $1.04M
NOI $62,314 @ 7.0% cap · market cap 6.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,349
Businesses Nearby
Explore this area
Business Placement
Demographics for 95110, CA
20,495
Population
7,568
Households
2.7
Avg Household Size
35
Median Age
40%
College-Educated
81%
High-School Grad
4.6 sq mi
ZIP Area
4,455
Density / Sq Mi
$132,800
Median Household Income
$60,241
Median Earnings
$2,629
Median Rent
$947,900
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - R2-zoned duplex offering rental income potential near downtown San Jose, transit, parks, shopping, dining, and freeway connections.
Where is this duplex located?
The property is located at 1120 Locust Street San Jose, CA.
What is the asking price?
The asking price for this property is $998,800.
What are key features of this property?
This property features: Duplex property at 1120 Locust Street, San Jose, CA 95110; Assumable FHA loan available to a buyer who qualifies; R2 zoning supports the residential property configuration
