East Oakland still possible for cash flow on rental property?

5 Replies

Hello All,

New to the forum and started researching some options in SF Bay Area. Oakland intrigues me since it is so close to SF and I know friends who live in West and North Oakland and commute to SF for work. East Oakland has always been rough but I feel prices are climbing. 

I was looking for properties that can cash flow even $100-$200/unit per month as I'm in this for the long haul. I believe all cities bordering San Francisco will hold value and has a decent chance of appreciation. If anyone has experience with East Oakland rental properties and the city in general, please share. (Pro's and Con's). BTW, we are looking for older properties with needs and plan to do the renovations ourselves (new flooring, new paint, etc).

Here are a couple properties I've been eyeing (now pending!)

https://www.zillow.com/savedhomes/for_sale/2478943...

https://www.zillow.com/savedhomes/for_sale/2479858...

For what it's worth, my parents are suggesting I save a bit more and look into other neighboring areas like San Leandro.

@Eddie Lau I commend you for looking into Oakland.  I have several properties in North and East Oakland.  Have you spent some time near the properties in your example?  @Saj Shah will know the area better then myself, but I usually stay north of 40th ave, but Saj is really rocking in the higher numbers! I am just not sure if this is the area to start your REI adventure unless you really know the area... But to answer your question, YES there are ways to cash flow in Oakland.

@Eddie Lau, if you plan to do the renovations yourself on the properties before year 1979, it would be better that you take the lead-based paint class and be certified on it, to avoid any possible fine by the government.

You can google lead-based paint online and find more details information about it.

Lead based paint is dangerous for future tenants (age 6 or below).

@Eddie Lau As a resident and also a Realtor here in Oakland I can tell you that cash flow is definitely possible. One concern you may have here is the strict rent control regulations, not as bad with sfh from what I understand. 

We do have atleast one REO available at this time. PM me for details if interested.

Originally posted by @Arlen Chou :

@Eddie Lau I commend you for looking into Oakland.  I have several properties in North and East Oakland.  Have you spent some time near the properties in your example?  @Saj Shah will know the area better then myself, but I usually stay north of 40th ave, but Saj is really rocking in the higher numbers! I am just not sure if this is the area to start your REI adventure unless you really know the area... But to answer your question, YES there are ways to cash flow in Oakland.

Thanks everyone for your input.  @Arlen Chou I am not too familiar with the area at all and plan to make the short drive over one weekend to see myself. One area that bothers me is the school district low ratings. One item I took away from Real Estate book was to find awesome tenants. 


I will keep my research going.

@Eddie Lau Definitely drive this area to see if you are comfortable with it. Seminary and Webster are notoriously high crime neighborhoods, so you will attract a certain type of tenant in these properties and at these price points. 

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here