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  • #45: 2 House Hacks, 1 Flip, and 1 Multi-Family!

#45: 2 House Hacks, 1 Flip, and 1 Multi-Family!

Standout investment opportunities, from house hacks to multifamily gems offering strong returns and growth potential.

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Hello Investors,

Welcome to Dealsletter #45! This week we feature properties that cater to various investor needs: TWO house hacks offering passive income, a San Francisco fixer-upper promising strong ROI, and a Kansas City historic apartment building with value-add potential. Whether you're building cash flow or aiming for equity growth, these properties are ready to perform.

๐Ÿ  Share the Love: If you're enjoying the insights and deals, why not spread the word? Forward this newsletter to friends and fellow investors. Don't let them miss out on these golden opportunities!

๐Ÿšจ Note on Numbers: All calculations for investment properties are based on a 25% down payment and a current interest rate of 6.88%, unless otherwise stated. For house hacks, we assume a 5% down payment with PMI at 0.4% and a 6.22%(FHA) interest rate. We do the math so you can focus on what matters โ€“ the deals!

๐Ÿ‘‰๐Ÿผ Stay up to date: Whatโ€™s the latest on mortgage rates?

Elegant brick house in London

๐Ÿ“ˆ The Stats: Each listing comes with detailed investment metrics like cap rates, GRM, and special financing options where available.

This Weeks Deals ๐Ÿ˜๏ธ

  1. House Hack in Oakland, CA

  2. House Hack in Pleasant Hill, CA

  3. House Flip in San Francisco, CA

  4. Multi-Family in Kansas City, MO

House Hack

Property: 6173 Valley View Rd, Oakland, CA
Price: $1,195,000
Beds/Baths: 4/4
Size: 2,013 sqft

Why This is a Great Investment ๐Ÿ‘‰๐Ÿผ This stunning 2020 build combines luxury living with income potential. Nestled in the Montclair hills, this home features high-end finishes, expansive views, and a permitted ADU with separate utilitiesโ€”perfect for generating rental income or housing guests. The home boasts Brazilian IPE decks, a spacious primary suite, and seamless indoor/outdoor living, making it a dream for owner-occupants seeking mortgage relief.

The Stats (5% Down w/Living in the main house) ๐Ÿ“

  • Gross Rent (ADU): $3,500/month

  • Operating Expenses (Taxes, Insurance, etc.): $1,797/month

  • Loan Payment (5% Down): $7,346/month

  • Effective Mortgage: $5,643/month

  • Yearly Tax Deductions: $37,923/year

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House Hack

Property: 825 Golf Club Cir, Pleasant Hill, CA
Price: $1,149,000
Beds/Baths: 5/3
Size: 1,600 sqft

Why This is a Great Investment ๐Ÿ‘‰๐Ÿผ This property offers two residences on one lot, with the main house featuring 3 bedrooms and 2 baths and a beautifully updated 2-bed/1-bath ADU. The 15,000 sqft lot provides ample room for expansion or outdoor amenities. With updated appliances and cozy interiors, this property is ideal for living in one unit while earning rental income from the other.

The Stats (5% Down /w Living in the main house) ๐Ÿ“

  • Gross Rent (ADU): $3,500/month

  • Operating Expenses (Taxes, Insurance, etc.): $1,294/month

  • Loan Payment (5% Down): $7,063/month

  • Effective Mortgage: $4,857/month

  • Yearly Tax Deductions: $43,022/year

House Flip

Property: 451 Amherst St, San Francisco, CA
Price: $815,000
Beds/Baths: 3/2
Size: 1,325 sqft

Why This is a Great Investment ๐Ÿ‘‰๐Ÿผ This Portola District fixer-upper offers excellent profit potential with its versatile layout and large lot. The property includes a 2-bed/1-bath upper level, a 1-bed/1-bath in-law unit, and an expansive backyard with ADU potential. With renovations, this property could become a standout in the neighborhood.

The Stats (10% Down w/HML Loan at 10.95% 1 year term) ๐Ÿ“

  • Purchase Price: $855,000 (Over asking based on market trends)

  • ARV: $1,203,000

  • Rehab Costs: $84,150

  • Holding Costs (6 months): $50,367

  • Profit: $115,653

  • ROI: 71%

Multi-Family Value-Add

Property: 3516 Central St, Kansas City, MO
Price: $1,399,000
Units: 14 (12 x 2-Bed, 2 x Studios)
Cap Rate: 6.60%

Why This is a Great Investment ๐Ÿ‘‰๐Ÿผ This historic colonnade building in Midtown Kansas City offers exceptional value-add potential. Large two-bedroom units, original hardwood floors, and proximity to amenities make this property an attractive option for tenants. With a 78% occupancy rate, thereโ€™s room for rental growth and cash flow optimization.

The Stats (25% Down) ๐Ÿ“

  • Gross Rental Income (Pro Forma): $16,140/month

  • Price Per Unit: $99,929

  • Building Size: 13,170 sqft

  • Occupancy Rate: 78%

  • Cap Rate: 6.60%

Whatโ€™s Brewing at Dealsletter โ˜•๏ธ

  • More House Hack Opportunities: With rising mortgage rates (Yay again), weโ€™re focusing on properties that can offer creative financing and live-in investment options. Think duplexes, triplexes, and ADU potential properties where you can live in one unit and rent out the rest.

  • Spotlight on Emerging Markets: Weโ€™re expanding beyond California, keeping an eye on emerging cities that offer attractive cap rates and investor-friendly climates. Weโ€™ll highlight cities you might not have considered but are primed for growth.

  • Dealsletter Success Stories: Have you closed on a property or found value through Dealsletter? We want to hear about it! Send us your story for a chance to be featured in our community section.

  • Premium Version Coming Soon!
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  • More Properties in Each Premium Issue
    Our premium version will offer more properties per issue, giving you a wider range of investment opportunities.

A Big Thank You! ๐Ÿ™Œ

We're immensely grateful for our early subscribers. Your trust and engagement are the fuel that drives Dealsletter. We promise to keep delivering top-notch real estate insights and deals.

Until next time,

The Dealsletter Team