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- #38: Bay Area Edition: Cash Flowing Multi-Units in San Jose, Oakland, and Beyond
#38: Bay Area Edition: Cash Flowing Multi-Units in San Jose, Oakland, and Beyond
Explore incredible multifamily investments across the Bay Area with strong rental upside and value-add opportunities.
Kevin
October 07, 2024
In partnership with
Hello Investors,
Welcome to the Bay Area Edition of Dealsletter! This issue brings you prime investment opportunities from San Jose to Oakland, including properties with high cap rates, excellent cash flow, and value-add potential. Whether you're looking for a turnkey multifamily building or a property to renovate and rent out at market rates, these deals have something for everyone. With units near San Jose State University and Lake Merritt, these properties offer great locations and investment potential in the ever-growing Bay Area rental market.
Let's dive into the numbers and see how these properties can work for you!
🏠 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!
🚨 Note on Numbers: All calculations for investment properties are based on a 25% down payment and a current interest rate of 6.53%, unless otherwise stated. For house hacks, we assume a 5% down payment with PMI at 0.4% and a 6.04%(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 🏘️
Multi-Family in San Jose, CA
Property: 8th St, 5 Units
Cap Rate: 5.66%
Multi-Family in Concord, CA
Property: Regent Pl, 4 Units
Cap Rate: 8.75%
Multi-Family in San Jose, CA
Property: Snow Dr, 3 Units
Cap Rate: 6.25%
Multi-Family in Oakland, CA
Property: Vernon St, 12 Rooms
Cap Rate: 10.75%
Multi-Family
Property: 630 S 8th St, San Jose, CA
Price: $1,695,000
Units: 5 (3 x Studios, 1 x 1 Bed/1 Bath, 1 x 1 Bed/2 Bath)
Cap Rate: 5.66%
Why This is a Great Investment 👉🏼 This 5-unit property, located just two blocks from San Jose State University, offers an excellent opportunity for investors seeking steady rental income. With potential to add a cost-effective ADU and boost returns, this well-maintained property features a unit mix designed for high rental demand. The proximity to Downtown San Jose, major employers, and seamless access to highways make it a top choice for tenants. The detached garage also presents an ADU conversion opportunity, offering even more income potential.
The Stats (25% Down) 📝
Gross Rent: $11,730/month
Total Annual Expenses: $41,943
Net Operating Income (NOI): $98,817/year
Cash Flow: Moderate, with the potential to increase through ADU conversion.
Cap Rate: 5.66%
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Multi-Family
Property: 1480 Reganti Pl, Concord, CA
Price: $1,149,000
Units: 4 (4 x 2 Bed/1 Bath)
Cap Rate: 8.75%
Why This is a Great Investment 👉🏼 One of the largest fourplexes in Contra Costa County, this property is a low-maintenance, cash-flowing asset. With some units recently renovated and all tenants in place, you can enjoy immediate rental income. The central AC and heat, plus coin-operated laundry, make it easy to manage. It’s an excellent opportunity for an investor looking for a stable property in a solid rental market.
The Stats (25% Down) 📝
Gross Rent: $9,420/month
Total Annual Expenses: $24,000
Net Operating Income (NOI): $80,040/year
Cash Flow: Moderate with stable long-term tenants in place.
Cap Rate: 8.75%
Multi-Family
Property: 5178 Snow Dr, San Jose, CA
Price: $1,499,999
Units: 3 (1 x 3 Bed/2 Bath, 1 x ADU 1 Bed/1 Bath, 1 x 2 Bed/1 Bath)
Cap Rate: 6.25%
Why This is a Great Investment 👉🏼 Fully remodeled and income-generating, this tri-plex in San Jose is perfect for investors or house hackers. The main house, ADU, and additional unit provide multiple income streams. This property is move-in ready and offers strong rental income potential in a desirable neighborhood, close to major tech employers and amenities. Whether you're looking to occupy one unit and rent the others or rent them all, this property delivers.
The Stats (25% Down) 📝
Gross Rent: $8,745/month
Total Annual Expenses: $30,000
Net Operating Income (NOI): $74,940/year
Cash Flow: Positive cash flow from multiple rental streams with room for rental growth.
Cap Rate: 6.25%
Multi-Family
Property: 435 Vernon St, Oakland, CA
Price: $1,750,000
Units: 12 Bedrooms (Co-Living) + ADU
Cap Rate: 10.75%
Why This is a Great Investment 👉🏼 With a rare 12-bedroom co-living setup, this property near Lake Merritt in Oakland offers excellent cash flow and rental upside. The property has been fully remodeled with new electrical, plumbing, HVAC, and solar systems, making it a low-maintenance investment. The bedrooms are rented individually to maximize income, making this property perfect for investors seeking high market rent potential. The ADU adds even more rental income.
The Stats (25% Down) 📝
Gross Rent: $18,000/month
Total Annual Expenses: $55,000
Net Operating Income (NOI): $189,000/year
Cash Flow: Strong positive cash flow with room to raise rents further.
Cash on Cash Return: 10.75%
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Until next time,
The Dealsletter Team