Most investors underwrite what exists. The informed investor sees what’s possible. At first glance, 11175 Huston St presents as a 40-unit asset priced at $210,000 per unit with a 5.39% cap rate in one of Los Angeles’ most active rental corridors. But the true opportunity lies not in current performance, it lies in a fully mapped path to value creation. The property is positioned to accommodate up to 18 additional ADUs with no loss of existing parking. This would expand the total unit count to 58, unlocking significant scale and income potential. Even before executing the ADU plan, the asset offers 41% upside in rental income, providing a meaningful lever to increase cash flow when units turn. Upon full execution of the ADU strategy, the deal projects to a 7.84% cap rate with a 20.23% average annual return over five years after construction costs. Transforming a stable core asset into a high-performing, value-add investment. If the investor were to add the ADUs and reach maximum upside in rents, the Intrinsic Value Cap Rate is projected at 9.42%. This reflects the property’s full cash flow potential after optimizing all income streams, such as building the maximum allowed ADUs, reconfiguring floorplans, adding other income (storage/parking etc.) and all are rents at market. Warren Buffet uses the Intrinsic Value when valuing investments. If you would like to learn more about the Intrinsic Value of the property, contact us at (310) 836-3638 or Kelly@KellyMorganCommercial.com *Disclaimer: The attached information and projections are provided for conceptual marketing purposes only and must be independently verified by prospective purchasers. Neither the Seller, Alactic Systems, Kelly Morgan, their team, nor any related employees or independent contractors guarantee the accuracy of this information. Buyers are responsible for conducting their own due diligence, including evaluating the feasibility of ADU development and consulting with appropriate licensed professionals regarding all relevant details, assumptions, and projections.