SPECIAL: San Francisco 4-unit VACANT, $2.3M. Comps support $3.75M

358-360 Vallejo St, San Francisco, CA 94133 4 units in 2 buildings · built 1907 · delivered vacant

Comps support a $3.75M appraisal, and at 80% LTV the refi returns all of your cash. If you want a cushion, run the refi at $3.5M too. It still works, with more cash left in.

Purchase $2,300,000 | Rehab (incl 10% contingency) $352,000 | All-in cost $2,876,567 ARV (comps) $3,750,000 | Conservative case $3,500,000 | Gross rent $29,000/mo

HOW THE FINANCING WORKS Two loans, two steps. Step 1: a hard money loan buys and rehabs the building. Step 2: a DSCR loan refinances it once the rehab is done and the units are leased. The plan is a cosmetic, in-kind remodel of all four units ($80,000 per unit plus 10% contingency), so it can go through over-the-counter permits. Total hold is 7 months.

STEP 1: HARD MONEY LOAN FOR THE PURCHASE (15% down, 9.95% interest-only, 85% price + 100% rehab) Down payment (15%): $345,000 Closing costs and points (3%): $69,000 7-month carry (interest, tax, insurance): $155,567 Cash in at close: $569,567 Loan: $2,307,000 Monthly interest: $19,129

STEP 2: DSCR LOAN REFINANCE (30-year, 7%). Refi costs 3% of appraised value. DSCR vs NOI $25,405/mo.

Option A: 75% LTV At $3.75M / At $3.50M New loan: $2,812,500 / $2,625,000 Refi costs (3%): $112,500 / $105,000 Hard money payoff: $2,307,000 / $2,307,000 Net refi proceeds: $393,000 / $213,000 Cash left in deal: $176,567 / $356,567 Monthly payment: $18,712 / $17,464 DSCR: 1.36 / 1.45

Option B: 80% LTV At $3.75M / At $3.50M New loan: $3,000,000 / $2,800,000 Refi costs (3%): $112,500 / $105,000 Hard money payoff: $2,307,000 / $2,307,000 Net refi proceeds: $580,500 / $388,000 Cash left in deal: all cash back plus $10,933 / $181,567 Monthly payment: $19,959 / $18,628 DSCR: 1.27 / 1.36

Cash left in is the $569,567 cash in at close minus net refi proceeds. At 80% and $3.75M you get all of it back. At 75% about $176,567 stays in. 80% LTV usually means a higher rate and tighter DSCR requirements than 75%. Lenders vary, so price both before you count on 80%.

RENTS ARE AT CURRENT MARKET: The $29,000/mo across four units is underwritten at current market rents. Nearby listings run $6K to $12K, and panoramic-view flats on Telegraph Hill list as high as $12.5K. SF rents could move higher with the AI boom driving demand, but we are not underwriting that upside because of the risk.

RENT ROLL Unit 1 (front, view): $8,000 Unit 2 (front, view): $8,000 Unit 3 (rear, view): $7,000 Unit 4 (rear, no view): $6,000 Gross: $29,000/mo ($348,000/yr)

YEAR 1 AFTER REFI (BASE CASE, 80% AT $3.75M) Monthly / Annual Gross rent: $29,000 / $348,000 Vacancy: $0 / $0 Taxes: $2,262 / $27,140 Insurance: $833 / $10,000 Water, sewer, trash: $500 / $6,000 NOI: $25,405 / $304,860 Debt service (7%): $19,959 / $239,509 Cash flow: $5,446 / $65,351 DSCR 1.27 | Cap rate at $3.75M 8.1% | Cash left in $0

WORTH CONSIDERING Options for readers who want to stress-test the deal. These are sensitivities, not corrections. Vacancy cushion: If you want a cushion, add 5% vacancy. That is about $1,450/mo. Cash flow is about $3,996/mo and DSCR lands around 1.20. Reserves: Some readers will want to carry repair and capex reserves on a 1907 building. At 20% total opex, cash flow is about $3,241/mo and DSCR is about 1.16. Rent control: As a pre-1979 building, units will likely fall under SF rent control after the first lease. Starting rents can be set at market, but annual increases are capped. Confirm the vacancy history too. ARV: Comps support $3,750,000 and it is achievable. If you want a downside case, run the refi at $3.5M too. It still works, with more cash left in. Taxes and insurance: Both are based on actual quotes and current tax rates. Taxes stay on the $2.3M purchase basis.

BOTTOM LINE Base case ($3.75M) / Conservative case ($3.5M) ARV: $3.75M / $3.5M Cash left in: $0 (all back plus $10,933) / $181,567 Year 1 cash flow: $5,446/mo / $5,327/mo DSCR: 1.27 / 1.29 Cash on cash: Infinite / 35.2% Both cases use 80% LTV. Conservative case cash flow includes an optional 5% vacancy cushion.

The deal works at the $3.75M the comps support. At $3.5M it still works, with more cash left in.

View this listing: https://www.zillow.com/homedetails/358-360-Vallejo-St-San-Francisco-CA-94133/328320846_zpid/ View the OM: https://www.adamfilly.com/358vallejostreet

Reader note: These numbers are an underwriting model, not a guarantee. Rehab is an assumption, not a contractor bid. Buyers do their own due diligence. Dealsletter is not affiliated with this listing.

Three or four deals like these, underwritten end to end, every week. Free forever.