Who says you can't cashflow in the Bay Area? Analyze this Deal!
Just saw this property "sold" on my Redfin alerts. Location is Oakland, CA. in an area I would consider class B. Each unit has 4BD/1.5BA, and at market rates, would command $3400-3800 per month each (given its proximity to BART).
https://www.redfin.com/CA/Oakland/3003-Martin-Luther-King-Jr-Way-94609/home/127066720
Asking was $749K in January. Lowered to $699K in April. Just sold for $575K. Currently fully tenant-occupied at with rental income of ~$4500.
Assuming 4% non-primary resident loan, 25% down, and all expenses accounted for, I'm seeing a net cashflow of over $1200/month, or 9% CoC.
Not the greatest return, but when you account for appreciation and rental upside, this is probably a winner.
Thoughts?