Big cash flow in Oakland? $80K gross (someday!) on $500K all-in..

[J. Martin]

I saw this property a while ago, but they just lowered the price today. 3,584 sq ft 4plex with 3/1's in the Eastmont neighborhood. Current rents would at least pay PITI. 3 uncooperative tenants, and listed as REO for $440K, down from almost $490K. Smells like some opportunity, especially if you can get a deeper discount. That's a pretty reasonable $123/sq ft at list price. And rents are almost $2/mo/sqft.

So pro forma's on market rents (if you can get all the units vacant!!!!!!!*******) would give you over 1.5% rent to price.. of course with some updating included.. About $1,700/mo +/- for 3br apt. So that would be $6,800/mo gross rents if/when you get it to market rates. On let's say $440K+ $60K in rehab, or $500K. For over $80K/yr gross rents in future on $500K purchase (just under $200K in cash w/ conventional 30yr fixed.) if you can hold out and let the rents reduce your mortgage in the mean time..

How long will it take to get there? Hard to say.

But the building should be worth at least another $100K after the work/tenant rotation, and this thing will be throwing off really nice cash flow..

Just throwing the idea out there for anyone looking for some cash flow in the Bay Area. Maybe someone down on the peninsula or San Jose who needs higher cap rate..

https://www.redfin.com/CA/Oakland/2648-Parker-Ave-94605/home/574744