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- #54: 4 Properties, 4 Strategies: House Hacks, Value-Add, and Strong Returns
#54: 4 Properties, 4 Strategies: House Hacks, Value-Add, and Strong Returns
House hacks, value-add, and cash-flowing gems in top markets.
Kevin
January 15, 2025
In partnership with
Hello Investors,
Welcome to Dealsletter #54 - your trusted source for handpicked real estate investment opportunities! This week’s lineup includes house hacks in prime locations, a value-add multifamily property with strong cash flow, and a rare opportunity in booming Sacramento. Whether you’re looking to live for free while tenants pay your mortgage or add significant returns to your portfolio, there’s something here for every investor.
🚨 Note on Numbers: All calculations for investment properties are based on a 25% down payment and a current interest rate of 7.26%, unless otherwise stated. For house hacks, we assume a 5% down payment with PMI at 0.4% and a 6.57%(FHA) interest rate. We do the math so you can focus on what matters – the deals!
👉🏼 Stay up to date: What’s the latest on mortgage rates?
📈 The Stats: Each listing comes with detailed investment metrics like cap rates, GRM, and special financing options where available.
This Weeks Deals 🏘️
House Hack OR Multi-Family in San Diego, CA
Property: Pardee St, 5 Units
Cap Rate: 7.4%
Multi-Family in Escondido, CA
Property: Grape St, 5 Units
Cap Rate: 5.6%
Multi-Family in Sacramento, CA
Property: 22nd St, 5 Units
Cap Rate: 5.36%
House Hack in West Sacramento, CA
Property: B St, 2 Units
Cap Rate: 6.84%
House Hack with Modern Living
Address: 322 S Pardee St, San Diego, CA
Price: $1,750,000
Cap Rate: 7.4%
Investment Strategy: House Hack
Why This is a Great Investment 👉🏼 This 5-unit property is your ticket to living almost rent-free in San Diego. With modern construction, updated amenities, and exemption from AB 1482 rent control for 15 years, you’ll enjoy stability and long-term appreciation. While it requires 25% down (commercial financing), tenants’ rent payments cover nearly your entire mortgage.
The Stats (House Hack - Commercial Loan at 25% Down) 📝
Purchase Price: $1,750,000
Gross Rent (living in one unit): $10,300/month
Operating Expenses: $1,973/month
NOI: $8,327/month
Loan Payment: $9,177/month
Effective Mortgage: $850/month
The Stats (Investment - Commercial Loan at 25% Down) 📝
Cap Rate: 7.4%
Gross Rent: $12,700
Operating Expenses(Taxes & Insurance): $1,973
NOI: $10,727
Cash Flow: STRONG
*NEW* DSCR: 1.17
GRM:11.48
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