Permitted Two-Unit
For Sale
$1,198,000
Pending
899 40th Avenue, San Francisco, CA 94121
RH-2 zoning and documented permits support the property’s two-residence configuration.
Property Size1,963 SF
Days on Market79
Property Features for 899 40th Avenue
General Information
Standard status
Pending
Size
1,963 SF
Property subtype
Multi Family
Zoning
RH-2
Units
Unit Mix
1 x 2BR/1.5BA, 1 x 2BR/1BA
Multifamily Units
2
Additional Details
Public Transit
Yes
Building Details
Year Built
1938
Listing Agency:
Intero Real Estate Services
(650) 438-3504
Listed By:
Karin Cunningham · License #01238095
(650) 438-3504
Source:
Exitrealty
Added: Jun 13
Changed: Aug 30
Last Checked: Aug 30 at 5:40AM
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 Intero Real Estate Services
Investment Insights
Based on property information with market context.
Located at 899 40th Avenue, this 1963 SF duplex includes two permitted residences within a corner property. The upper home offers two bedrooms, one full bathroom, one half bathroom, a formal dining room, refinished hardwood flooring, and fresh interior paint. The lower residence has two bedrooms, one bathroom, a kitchen, an open living and dining area, and a separate backyard entrance. The property’s original construction dates to 1938, and the roof was replaced in 2020.
RH-2 zoning and permits are documented for the second unit. The property sits across from Golden Gate Park and is served by public transportation. Ocean Beach is 10 blocks away, while grocery shopping and the restaurants, cafés, and neighborhood shops along Balboa Street are nearby, with Balboa Street located two blocks from the property.
RH-2 zoning and permits are documented for the second unit. The property sits across from Golden Gate Park and is served by public transportation. Ocean Beach is 10 blocks away, while grocery shopping and the restaurants, cafés, and neighborhood shops along Balboa Street are nearby, with Balboa Street located two blocks from the property.
Key Highlights
- 1963 SF duplex with two permitted residences
- RH‑2 zoning with permits on file for the second unit
- Upper residence includes two bedrooms, one full bath, and one half bath
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
$69,764
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
5.82%
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%
$1,395,280
$1.4M
Cap Rate 7%
$996,629
$996.6K
Cap Rate 9%
$775,156
$775.2K
Market Conditions
NOI Build-Up for 1,963 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
$106.0K $54.00/SF
− Vacancy
−$6.3K −$3.23/SF
EGI
$99.7K $50.77/SF
− OpEx
−$29.9K −$15.23/SF
NOI
$69.8K $35.54/SF
Area
San Francisco, CA
Vacancy
5.98%
Lease Rate
$54.00 /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%
$1,395,280
Cap Rate 7%
$996,629
Cap Rate 9%
$775,156
Alternative Uses
Best Use
Multifamily LT 5
$996.6K
$872.1K – $1.16M
NOI $69,764 @ 7.0% cap · market cap 5.82%
Second Best
Apartment 5plus
$910.5K
$796.7K – $1.06M
NOI $63,733 @ 7.0% cap · market cap 5.32%
Theoretical Best
Specialty Retail
$9.59M
$8.39M – $11.19M
NOI $671,191 @ 7.0% cap · market cap 56.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
960
Businesses Nearby
Explore this area
Business Placement
Demographics for 94121, CA
43,115
Population
19,742
Households
2.2
Avg Household Size
42
Median Age
64%
College-Educated
92%
High-School Grad
2.5 sq mi
ZIP Area
17,246
Density / Sq Mi
$138,353
Median Household Income
$74,646
Median Earnings
$2,327
Median Rent
$1,634,600
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Duplex - RH-2 zoning and documented permits support the property’s two-residence configuration.
Where is this duplex located?
The property is located at 899 40th Avenue San Francisco, CA.
What is the asking price?
The asking price for this property is $1,198,000.
What are key features of this property?
This property features: 1963 SF duplex with two permitted residences; RH‑2 zoning with permits on file for the second unit; Upper residence includes two bedrooms, one full bath, and one half bath
