Do they know something I don't?
I looked at this property a couple months ago.
https://www.redfin.com/CA/Oakland/1124-16th-St-946...
There's nothing special about it. Not a good neighborhood, not a good school district, needs a lot of work structural, electrical and cosmetic. There's nothing charming about the apartments. In addition, it is under rent control and just cause for eviction. It comes with 2 tenants. The buyer won't be able to raise the rent on them more than the city dictates (which is historically around 2%/yr) and can't easily get rid of them.
I did a BP analysis on this property and underestimated expenses. I still couldn't get it to even break even. Yet, the property had enough offers on it that it sold over asking.
What am I missing? Is this market so hot that people are making ridiculous decisions? Or is there some method of making money here that I don't know about?