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  • Dealsletter Issue #3: Navigating the Bay Area Market—Your Guide to Unbeatable Real Estate Deals

Dealsletter Issue #3: Navigating the Bay Area Market—Your Guide to Unbeatable Real Estate Deals

Your Essential Guide to Navigating the Bay Area's Booming Real Estate Market

Welcome to this week's issue of Dealsletter, focusing exclusively on the Bay Area's complex real estate market. Despite rising interest rates and notoriously high property prices, we've combed through countless listings to bring you deals that still make financial sense. Let's explore what the Bay Area has to offer this week!

Investing in Bay Area real estate can seem daunting, given the skyrocketing prices and rising interest rates. But don't count it out—this unique market offers solid long-term appreciation, robust job growth led by the tech industry, and strong rental demand. This week, we've scoured the area to bring you deals that offer value, even in this challenging landscape. Let's dive in!

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🚨 Our calculations are based on a 20% downpayment or more and take into account the current interest rate. We've got the numbers covered!

In this issue, we mainly discuss multi-family or short-term rentals. This is because it is very challenging to find single-family homes that generate positive cash flow in this market without making substantial down payments.

Short Term Rental

$725,000

3 Bed / 2 Bath / 1,337 Sq. Ft.

From the listing agents 👉🏼 : Beautifully refreshed single-level 3 bedroom 2 bathroom features fresh paint and boasts new fixtures throughout, giving it a modern and inviting feel. Kitchen and bathrooms have been thoughtfully updated, providing a perfect blend of style and functionality. Situated on a corner lot, this home offers ample natural light and a sense of openness. Back yard has hookups for a hot tub and plenty of space to garden and play. Ample size garage for car parking or storage and plenty of additional RV or larger vehicle parking.

The Stats 📝

  • Cap Rate: 8.1%

  • Year 1 Cash-Cash Return: 6.7%

  • Monthly Revenue: $9,317

  • Monthly Cash Flow: $964

  • Renovation: Property appears turn key.

  • 10-year Return: 11.6% / yr

Long Term Rental

$460,000

2 Bed / 1 Bath / 772 SqFt

From the listing agents 👉🏼 : This corner house is quite a jewel! With new flooring and paint throughout, plus new Quartz kitchen countertops, air conditioner and bathroom vanity, plus newer roof, water heater and refrigerator, this special home is not to be missed. Located on an oversized corner lot, the huge yards are a blank canvas to create whatever you envision: boat or RV parking? Urban garden? You name it. Great location for freeway access, restaurants, shopping or the Ferry to SF.

The Stats 📝

  • Cap Rate: 4.6%

  • Appreciation: 2.3%

  • Monthly Rent: $2,910

  • Rent Growth: 3.5%

  • Renovations: Property appears turnkey.

  • 10-year Return: 11.2%

Short Term Rental

$1,328,000

4 Bed / 3 Bath / 1,540 Sq. Ft

From the listing agents 👉🏼 : 40878 Daily Rd in Fallbrook is a remarkable hilltop retreat, home or get away nestled on 8.1 acres of picturesque land. This spacious 2598 square foot home boasts 5 bedrooms and 3 bathrooms, making it ideal for families or those who love to entertain. The heart of the home features a kitchen overlooking a wrap around porch with sunset views. The outdoor oasis includes a pool, spa, waterfall, and slide, perfect for gatherings and making memories. The real gem is the stunning hilltop location with breathtaking sunset views. 40878 Daily Rd in Fallbrook is a sanctuary to unwind, entertain, and revel in nature. It offers the best of Southern California living in a serene and private setting.

The Stats 📝

  • Cap Rate: 7.7%

  • Year 1 Cash-Cash Return: 5%

  • Appreciation: 4.5%

  • Monthly Revenue: $15,533

  • Monthly Cash Flow: $1,240

  • 10-year Return: 20% /yr

Multi-Family(House Hack)

$1,159,000

Duplex

2 units consisting of 3 bedroom, and 2 baths.

This property is great for a house hack. You can live in one unit and rent out the other to help pay your mortgage. The rent for a 3-bedroom unit is higher, so you can benefit from that. It also allows you to enter the market and take advantage of property value increase. If interest rates decrease, you can refinance, move out, and make a profit.

Each side can rent for $5000/mo!

From the listing agents 👉🏼 : Welcome to this vacant charming Duplex in San Francisco, nestled in a highly convenient location. This property boasts two separate units, each generously offering 3 bedrooms and 2 bathrooms, providing comfortable living spaces. One of the standout features of this property is its three separate meters for electric and water. The upper unit is a haven of elegance, featuring high ceilings that create a sense of spaciousness. The large formal living room is adorned with an ornate fireplace, while windows flood the space with natural light. The spacious kitchen is perfect for cooking, and the large bedrooms, including one ensuite, provide ample comfort. The middle unit, with its modern flooring, boasts an updated full bath and a bedroom with a convenient powder room. The shaker cabinet kitchen with stainless steel appliances is a contemporary delight, and there's a formal dining area that can also serve as a flex space. With its large garage and a convenient driveway, you'll have ample parking options and potential living space expansion. Furthermore, there's a versatile area currently used for Dedicated laundry area located at the back of the building. Close proximity to freeways, H Mart, Bart station, and Mission corridor businesses; this duplex offers the ultimate convenience.

The Stats(For house hacking) 📝

  • Rent from other unit: $5000/mo (Avg market rent for SF 3 bed)

  • Effective Mortage after house hack: $3000/mo

  • Cap rate: 1.9%

  • Operative Expenses: $2598/mo

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Coming soon...

  • More properties and states per issue.

  • More details like occupancy rate, vacancy rate, cash needed, renovation costs, and more.