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Dealsletter Issue #30: High-Potential Multi-Family Investments Across California

Explore Value-Add Opportunities and Prime Rental Properties in San Diego, Santa Clara, and Sacramento

Author

Kevin
September 04, 2024

In partnership with

Hello Investors,

Welcome to Dealsletter Issue #30! This week, we're bringing you an exciting mix of multi-family investment opportunities in key California markets. From newly renovated properties in San Diego to value-add opportunities in Sacramento, these deals offer something for every investor. Let’s explore this week's top picks and uncover their potential!

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🚨 Note on Numbers: All calculations for investment properties are based on a 25% down payment and a current interest rate of 6.43%, unless otherwise stated. For house hacks, we assume a 5% down payment with PMI at 0.4% and a 6.44% 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?

Aerial view of luxurious California home

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

This Weeks Deals 🏘️

  1. Multi-Family in Vallejo, CA

  2. Multi-Family in Oakland, CA

  3. Value-Add Multi-Family in Sacramento, CA

Multi-Family

Property: 4673-4677 32nd St, San Diego, CA
Price: $2,299,000
Units: 4 (2 x 2 Bed/1 Bath, 2 x 1 Bed/1 Bath)
Cap Rate: 4.60%
Gross Rent Multiplier (GRM): 15.53

Why This is a Great Investment 👉🏼 Located in the desirable Normal Heights neighborhood, this fully renovated 4-unit complex offers immediate rental income and future growth potential. The property includes plans and permits to add two 1BR/1BA ADU units, providing a value-add opportunity. With modern finishes, private yards, and strong tenant appeal, this investment is poised for long-term success.

The Stats 📝

  • Gross Rent: $11,500/month

  • Total Annual Expenses: Estimated at $45,000

  • Net Operating Income (NOI): $105,100/year

  • Cash Flow: Moderate, with future upside from ADUs

  • Cash on Cash Return: 4.6%

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Multi-Family

Property: 1370 Calabazas Ct, Santa Clara, CA
Price: $5,100,000
Units: 12 (9 x 2 Bed/1.5 Bath, 3 x 2 Bed/1 Bath)
Cap Rate: 4.69% (5.06% with reduced insurance)

Why This is a Great Investment 👉🏼 This first-time-on-market, 12-unit apartment building features spacious 2-bedroom units and significant rental upside. Recent renovations, including a completely rebuilt rear building and substantial upgrades to the townhouse units, provide immediate income with room for further improvements. Investors can reposition this asset to achieve higher rents and increase NOI.

The Stats 📝

  • Gross Rent: $400,800/year

  • Total Annual Expenses: $150,884

  • Net Operating Income (NOI): $238,996

  • Cash Flow: Strong, with potential for rent increases and lower insurance costs

  • Cash on Cash Return: 5.06%

Value-Add Multi-Family

Property: 1220 South Ave, Sacramento, CA
Price: $550,000
Units: 5 (All 2 Bed/1 Bath)
Cap Rate: 5.20%
Gross Rent Multiplier (GRM): 9.18

Why This is a Great Investment 👉🏼 A rare value-add opportunity in Sacramento’s Del Paso Heights neighborhood, this 5-unit property features all 2-bedroom units with central A/C and off-street parking in a gated lot. The current owner has started renovations, including new appliances, granite countertops, and new carpet, but there's room to bring all units up to market rent. This property is ideal for investors looking to enhance value and cash flow through strategic improvements.

The Stats 📝

  • Gross Rent: $7,625/month

  • Total Annual Expenses: Estimated at $30,000

  • Net Operating Income (NOI): $38,600/year

  • Cash Flow: Moderate, with significant value-add potential

  • Cash on Cash Return: 5.2%

What’s Brewing at Dealsletter ☕️

  • Now 3x a Week!
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  • More Properties in Each Premium Issue
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  • Our Commitment
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A Big Thank You! 🙌

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