Two-Home Residential Income
For Sale
$1,295,000
1499 Farroll, Grover Beach, CA 93433
Two private homes sit on flat, fenced land with extensive parking and multiple garages plus RV parking and hook-ups.
Property Size2,123 SF
Lot Size0.83 Acres
Days on Market97
Property Features for 1499 Farroll
General Information
Standard status
Active
Size
2,123 SF
Lot size
0.83 Acres
Property subtype
Investment
Additional Details
Fenced Yard
Yes
Building Details
Building Size
2,123 SF
Year Built
1947
Stories
1
Units
2
Listing Agency:
Auer Real Estate Inc.
Listed By:
Brenda Auer · License #01310530
(805) 801-6694
Source:
Elliman
Added: Jun 1
Changed: Aug 31
Last Checked: Sep 4 at 1:47PM
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 Auer Real Estate Inc.
Investment Insights
Based on property information with market context.
This residential income property features two private homes on flat, usable, fenced land. The main home is a 3-bedroom residence with a large bonus room, and a separate second home provides 2 bedrooms. The configuration also allows for additional space, including the option to add homes or other structures, subject to city review.
The property includes substantial parking infrastructure with 5 garages, along with RV parking and hook-ups. It is located less than two miles from the beach, and basic services such as grocery stores, gas stations, schools, parks, and auto-related services are within a mile radius.
Outside of the existing two-home setup, buyers should confirm with the city how many additional homes or ADUs may be added.
The property includes substantial parking infrastructure with 5 garages, along with RV parking and hook-ups. It is located less than two miles from the beach, and basic services such as grocery stores, gas stations, schools, parks, and auto-related services are within a mile radius.
Outside of the existing two-home setup, buyers should confirm with the city how many additional homes or ADUs may be added.
Key Highlights
- Two private homes on flat, fenced 36,155 sq ft lot with extensive parking and 5 garages
- RV parking with hook‑ups available
- Main home features 3 bedrooms plus a large bonus room
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
$44,392
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
3.43%
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%
$887,840
$887.8K
Cap Rate 7%
$634,171
$634.2K
Cap Rate 9%
$493,244
$493.2K
Market Conditions
NOI Build-Up for 2,123 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
$65.0K $30.60/SF
− Vacancy
−$1.5K −$0.73/SF
EGI
$63.4K $29.87/SF
− OpEx
−$19.0K −$8.96/SF
NOI
$44.4K $20.91/SF
Area
San Luis Obispo County, CA
Vacancy
2.38%
Lease Rate
$30.60 /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%
$887,840
Cap Rate 7%
$634,171
Cap Rate 9%
$493,244
Alternative Uses
Best Use
Multifamily LT 5
$634.2K
$554.9K – $739.9K
NOI $44,392 @ 7.0% cap · market cap 3.43%
Second Best
Apartment 5plus
$585.5K
$512.3K – $683.1K
NOI $40,985 @ 7.0% cap · market cap 3.16%
Theoretical Best
Healthcare Medical
$834.9K
$730.6K – $974.1K
NOI $58,446 @ 7.0% cap · market cap 4.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
474
Businesses Nearby
Explore this area
Business Placement
Demographics for 93433, CA
12,643
Population
5,757
Households
2.2
Avg Household Size
42
Median Age
27%
College-Educated
83%
High-School Grad
2.2 sq mi
ZIP Area
5,747
Density / Sq Mi
$82,534
Median Household Income
$39,412
Median Earnings
$1,921
Median Rent
$691,900
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 - Two private homes sit on flat, fenced land with extensive parking and multiple garages plus RV parking and hook-ups.
Where is this duplex located?
The property is located at 1499 Farroll Grover Beach, CA.
What is the asking price?
The asking price for this property is $1,295,000.
What are key features of this property?
This property features: Two private homes on flat, fenced 36,155 sq ft lot with extensive parking and 5 garages; RV parking with hook‑ups available; Main home features 3 bedrooms plus a large bonus room
