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Dealsletter Issue #29: Diverse Multi-Family Investments from Vallejo to Oakland

High-Yield Investment Opportunities Across California's Hottest Markets

Author

Kevin
September 02, 2024

Hello Investors,

Welcome to Dealsletter Issue #29! This week, we're spotlighting a diverse range of multi-family properties across California, offering everything from turnkey investments to value-add opportunities. Whether you're a seasoned investor or just starting, these properties provide excellent potential for cash flow and long-term growth. Let's dive into this week's top deals!

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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 6.5%, 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?

📈 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. House Hack / Multi-Family in Escondido, CA

Multi-Family

Property: 804-810 Springs Rd, Vallejo, CA
Price: $995,000
Units: 4 (All 3 Bed/1 Bath)
Cap Rate: 6.03%
Gross Rent Multiplier (GRM): 10.26

Why this is a good investment 👉🏼 : Located in the vibrant Old City Vallejo, this 4-unit property offers spacious 3-bedroom units with a total living space of 3,472 sq ft. It generates a strong rental income of $8,084 monthly, making it a steady cash-flowing asset. With easy access to public transit, major highways, and San Francisco ferry services, this property is ideal for a diverse tenant base. Plus, the ongoing neighborhood revitalization efforts add a significant upside potential.

The Stats 📝

  • Gross Rent: $97,008/year

  • Total Annual Expenses: Estimated at $37,520

  • Net Operating Income (NOI): $59,488

  • Cash Flow: Moderate, with potential for appreciation

  • Cash on Cash Return: 6.03%

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Multi-Family

Property: 809 E 28th St, Oakland, CA
Price: $2,750,000
Units: 14 (6 Studios, 7 1 Bed/1 Bath, 1 2 Bed/1 Bath)
Cap Rate: 6.10%

Why this is a good investment 👉🏼 : This well-maintained 14-unit apartment building in Oakland’s Ivy Hill neighborhood is a rare find. With its corner lot, beautiful architecture, and substantial rental upside, this property is perfect for investors looking for long-term returns. The property is cash-flowing from day one and benefits from a high occupancy rate and strong tenant retention history. Ideal for value-add investors looking to remodel and maximize returns.

The Stats 📝

  • Gross Rent: $258,599/year

  • Total Annual Expenses: $89,736

  • Net Operating Income (NOI): $166,354

  • Cash Flow: Strong with upside potential

  • Cash on Cash Return: 6.1%

House Hack or Multi-Family

Property: 136 E 5th Ave, Escondido, CA
Price: $1,050,000
Units: 3 (1 x 3 Bed/2 Bath, 2 Studios)
Cap Rate: 4.90% / 6%

Why this is a good investment 👉🏼 : This newly renovated triplex in Escondido offers a unique opportunity for both house hackers and investors. With a spacious 3-bedroom front house and two studio back units, this property is perfect for living in one unit while renting out the others to cover the mortgage. Alternatively, rent out all three for steady cash flow. The units feature modern updates, including marble kitchen countertops and new flooring, ensuring high market rents and low vacancy.

The Stats (House Hack, 5% Down) 📝

  • Cash Needed: $84,000

  • Gross Rent: $5,350/mo (for 2 units filled)

  • Total Operating Expenses: Estimated at $944/mo (Include Vacancy, Insurance, Taxes, Maintenance, and Cap Exp.)

  • Effective Mortgage Payment after all expenses: Approx. $2,767/mo

  • Cash Flow: None. Significant mortgage coverage through rental income.

The Stats (Fully Rented, 25% Down) 📝

  • Gross Rent: $7100/mo

  • Total Operating Expenses: Estimated at $1,119/mo

  • Net Operating Income (NOI): $5,271/mo

  • Cash Flow: Strong, especially in a high-demand rental area

  • Cash on Cash Return: 6%

What’s Brewing at Dealsletter ☕️

  • Now 3x a Week!
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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