Duplex with New Permitted
For Sale
$950,000
242 W 88th, Los Angeles, CA 90003
Two separate residences are delivered vacant, including a permitted new-construction ADU.
Property Size1,629 SF
Days on Market17
Property Features for 242 W 88th
General Information
Standard status
Active
Size
1,629 SF
Property subtype
Duplex
Building Details
Building Size
1,629 SF
Year Built
1910
Listing Agency:
Real Broker
Listed By:
Brenda Piumpunyalerd · License #01894496
(213) 400-5803
Source:
Truthrealty
Added: Aug 18
Changed: Sep 2
Last Checked: Sep 2 at 9:16PM
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 Real Broker
Investment Insights
Based on property information with market context.
This duplex property includes a 2-bedroom, 1-bath main residence measuring 812 square feet and a separate, newly constructed ADU with 817 square feet, 2 bedrooms, and 1 bath. The ADU is permitted and provides a second self-contained living space, while both units are scheduled for delivery vacant. The property was originally built in 1910.
The address places the property near the Vermont Avenue and Broadway corridors in South Los Angeles, with access to the 110 Freeway. USC, Exposition Park, and Downtown Los Angeles are also nearby, along with shopping, dining, and public transit. The two-unit configuration supports flexible occupancy across the main home and ADU.
The address places the property near the Vermont Avenue and Broadway corridors in South Los Angeles, with access to the 110 Freeway. USC, Exposition Park, and Downtown Los Angeles are also nearby, along with shopping, dining, and public transit. The two-unit configuration supports flexible occupancy across the main home and ADU.
Key Highlights
- Two‑unit property with both residences delivered vacant
- 812‑square‑foot main residence with 2 bedrooms and 1 bath
- 817‑square‑foot permitted ADU completed as new construction
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
$36,877
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
3.88%
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%
$737,540
$737.5K
Cap Rate 7%
$526,814
$526.8K
Cap Rate 9%
$409,744
$409.7K
Market Conditions
NOI Build-Up for 1,629 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
$53.8K $33.00/SF
− Vacancy
−$1.1K −$0.66/SF
EGI
$52.7K $32.34/SF
− OpEx
−$15.8K −$9.70/SF
NOI
$36.9K $22.64/SF
Area
ZIP 90003
Vacancy
2.00%
Lease Rate
$33.00 /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%
$737,540
Cap Rate 7%
$526,814
Cap Rate 9%
$409,744
Alternative Uses
Best Use
Apartment 5plus
$28.80M
$25.20M – $33.60M
NOI $2,015,976 @ 7.0% cap · market cap 212.21%
Second Best
Multifamily LT 5
$526.8K
$461.0K – $614.6K
NOI $36,877 @ 7.0% cap · market cap 3.88%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,197
Businesses Nearby
Explore this area
Business Placement
Demographics for 90003, CA
72,764
Population
18,349
Households
4
Avg Household Size
30
Median Age
7%
College-Educated
53%
High-School Grad
3.6 sq mi
ZIP Area
20,212
Density / Sq Mi
$54,781
Median Household Income
$30,132
Median Earnings
$1,515
Median Rent
$547,600
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 separate residences are delivered vacant, including a permitted new-construction ADU.
Where is this duplex located?
The property is located at 242 W 88th Los Angeles, CA.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: Two‑unit property with both residences delivered vacant; 812‑square‑foot main residence with 2 bedrooms and 1 bath; 817‑square‑foot permitted ADU completed as new construction
