1535 W 224th Street, Torrance, California 90501, Torrance, 90501 - 4 bed, 2 bath
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Torrance, California 90501
This Strong Value Opportunity is a Residential Income Duplex listed at $850,000—positioned well below the $940,688 Fair Market Value by 9%. This valuation gap offers $90,688 in Instant Equity. With a Fair Condition Rating, the property features LARD2 Zoning and significant ADU Potential on a 7,200 sq ft lot. Proximity to the $1.7B Harbor-UCLA expansion ensures long-term demand. This is a strategic acquisition ideal for Buy-and-Hold Investors or Value-Add Developers seeking stable cash flow and growth.
Comparables within 1 miles sold in recently
| Address | Sold Price | Beds | Baths | Sq Ft | $/Sqft | Distance |
|---|---|---|---|---|---|---|
★ 1535 W 224th Street Subject | $850,000* List Price | 4 | 2 | 1,596 | $589 | - |
A 2422 Arlington Sold | $1,080,000 | 4 | 2 | 1,600 | $675 | 0.7 mi |
B 2422 Arlington Sold | $1,080,000 | 0 | 0 | 1,600 | $675 | 0.7 mi |
* Subject property listed price vs sold prices of comps.
Property is moderate renovation needed.
Built in 1961, the property is over 60 years old. While the description notes 'several units' have received recent kitchen and bath upgrades (quartz countertops, new cabinetry) and subfloor plumbing work, it is explicitly marketed as a 'value-add' opportunity with significant rent upside. This indicates that the property as a whole remains dated and requires further modernization to reach full market potential, fitting the 'Fair' criteria for older assets needing updates.
Priced under $1,000,000, this duplex qualifies for conventional residential financing rather than a commercial loan, allowing for lower down payments and more competitive interest rates.
The large 7,200 sq ft lot and LARD2 zoning provide a prime opportunity for ADU development, while current rents sit approximately 24% below market rates, offering substantial income upside.
Proximity to the $1.7 billion Harbor-UCLA Medical Center expansion and major employment hubs like the Port of LA ensures high rental demand and long-term capital appreciation.
The property must be purchased and closed concurrently with the adjacent triplex for a total of $1.8M, which limits the buyer pool to those with higher capital capacity.
Governed by LA City RSO, the property is subject to strict annual rent increase caps, which may slow the timeline for reaching pro forma market stabilization.
PACKAGE SALE — Both properties must close concurrently. Combined asking price: $1,800,000. 1541 W 224th St, (MLS# PW26112719) must be purchased together with 1535 W 224th St (MLS# PW26112707). Do not disturb tenants. 5-unit, two-parcel value-add opportunity in Harbor Gateway. Two adjacent lots totaling 14,402 sq ft zoned LARD2, each on its own APN. 1541 W 224th St is a 3-unit triplex (6 BR / 3 BA, 2,558 sq ft); 1535 W 224th St is a 2-unit duplex (4 BR / 2 BA, 1,596 sq ft). Both built 1961, well-maintained. RESIDENTIAL FINANCING: Each parcel is priced independently under $1,000,000 and qualifies for conventional residential financing on its own APN — no commercial loan required. Lower down payment, better rates, and access to a significantly larger lender pool. ADU POTENTIAL: Combined 14,402 sq ft LARD2 zoning supports multiple additional dwelling units under CA state law. Harbor Gateway ADU rents currently range from $2,300 to $2,600/mo, with each additional unit delivering meaningful income and asset value growth. RENT UPSIDE: Current blended rent averages $1,740/mo per unit against market rents of approximately $2,300/mo. Rents governed by LA City RSO — currently 3% annually for 2026 — providing steady, compounding income growth as units turn. At stabilized market rents: pro forma gross income approximately $141,600/yr and pro forma NOI exceeding $99,500/yr, no ADUs required. MULTIPLE EXIT STRATEGIES: Hold as a stabilized combined portfolio. Develop ADUs to maximize NOI and asset value. Sell parcels individually once stabilized — each independently financeable. Phased development across two lots. PROPERTY CONDITION: Several units have received interior upgrades, including bathroom remodels, kitchen improvements (new cabinetry and quartz countertops), subfloor plumbing, and new flooring throughout. Four of five tenants have occupied 10+ years — stable cash flow from day one. Direct 110 Fwy access. Minutes to the Port of LA, South Bay employment corridor, and Downtown Los Angeles. Short distance from Harbor-UCLA Medical Center — site of LA County's largest-ever healthcare capital project, a $1.7 billion replacement and expansion currently under construction.
No exterior & parking available.
Grades K-5 • 0.6 mi
Grades K-5 • 0.7 mi
Grades K-5 • 2.7 mi
No sensitive facilities data found.
| Feature | Subject | Average Home | Neighborhood Ranking (50 Listings) |
|---|---|---|---|
| Beds | 4.0 | 0.0 | 83% |
| Baths | 2.0 | 0.0 | 75% |
| Square foot | 1,596 | 1,752.5 | 25% |
| Lot Size | 7,200 | 6,823.5 | 50% |
| Price | $850.0K | $1.05M | 25% |
| Price per sq ft | $533 | $553 | 50% |
| Built year | 1961 | 1947 | 75% |
| HOA | $0 | $0 | 50% |
| Days on market | 0 | 97 | 8% |
May 31, 2026
$850,000
Initial Listing
Mar 8, 2022
$690,000
Public Record