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Hello Investors,
🔥 THIS WEEK
NOBE 8-Unit: 18.3% CoC ($72K/year), 10.4% cap, 1.96x DCR, corner lot ADU optionality
Oakland 28-Unit Mixed-Use: 9.39% CoC current, 5 vacant units immediate upside, billboard + retail income
San Jose Berryessa 6-Unit: 5.5% CoC BUT all capex done, 10/10 school, BART adjacent, patient capital
San Pablo 6-Unit: 5.8% CoC NO rent control, DSCR 5.75%, vacant unit market reset
📝 Note on Numbers: All Bay Area multifamily uses 25% down. DSCR loans at 5.75-5.85% (Oakland 28-unit, San Pablo, NOBE) provide structural advantage versus 6.5% conventional. San Jose uses 6.0% rate.
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🏢 NOBE 1036 60th 8-Unit - 18.3% COC DEAL OF SESSION
📍 1036 60th St, Oakland/Emeryville, CA 94608
💰 Price: $1,425,000 ($178,125/unit)
🏠 Units: 4 Studios, 4×1BR, 10,425 SF Corner Lot
🏦 Year 1 CF: $72,880/yr (18.3% CoC) | Cap: 10.4%
18.3% CoC ($72K/year), 10.4% cap, 1.96x DCR, corner lot ADU optionality
Key Metrics - STRONGEST BAY AREA RETURNS:
Critical Numbers | |
|---|---|
Down Payment (25%) | $356,250 |
Total Cash Required | $399,000 |
Gross Rent | $17,200/mo |
Annual Cash Flow | $72,880 ($6,073/mo) |
Year 1 CoC | 18.3% 🔥 |
Cap Rate | 10.4% |
Debt Coverage | 1.96x |
Break-Even Ratio | 59.7% |
Price Per Unit | $178,125 |
DSCR Loan Rate | 5.85% |
18.3% CoC Strongest Bay Area Session: $6,073/month ($72,880/year) on $399,000 deployed = exceptional immediate return market where investors routinely accept 4-6% CoC, Berkeley/Oakland/SF premium locations typically deliver half this yield
10.4% Cap NOBE East Bay Unprecedented: In North Oakland/Berkeley/Emeryville convergence most durable rental demand zones, cap rate simply DON'T EXIST Berkeley proper Emeryville at ANY price, this pricing reflects location premium WITHOUT premium pricing
1.96 DCR Fortress Protection: Income NEARLY DOUBLES debt service current rents = strongest debt coverage Bay Area deals analyzed session, can absorb extended vacancy OR significant expense events without threatening debt service
59.7% Break-Even Operational Bulletproof: Can lose 40% GROSS INCOME before underwater debt service = fortress-level cushion, two units vacant simultaneously still cash flow positive easily
10,425 SF Corner Lot Hidden Value:
ADU potential: Single accessory dwelling $1,800-2,000/mo adds $21,600-24,000/year NOI
At 10.4% cap = $207K-$231K added asset value single ADU execution
Development optionality: Long-term densification beyond 4,632 SF building footprint
Land value NOT captured current income model compounding quietly
New Roof + Electrical Done MAJOR: Two highest-impact most-disruptive capital items 1925 building resolved, remaining CapEx reserve $860/mo ($10,320/year) appropriately conservative but minimal near-term draws, real effective cash flow runs HIGHER than modeled
DSCR Loan 5.85% Below Market: Lender income validation built-in, saves meaningful debt service versus 6.5-6.75% conventional, structural debt cost protection
Rent Roll At/Below Market: $2,050-2,250/unit studios/1BRs NOBE, comparable Berkeley proper product runs $2,200-2,800, documented upside simply market normalization units turn over
Oakland Rent Control Reality: 1925 construction all residential units covered Oakland Rent Adjustment Program, annual increases capped ~60% CPI occupied units, market rent resets happen vacancy only, know going in manage accordingly
10-Year Wealth Trajectory: Cash flow $121K/year, equity $1.22M, 30.4% CoC on original $399K invested = strongest wealth accumulation trajectories any deal session
20-Year Total Profit: $4,511,566 on $399K invested = what compounding looks like one Bay Area's most supply-constrained corridors
Risk Level: LOW-MEDIUM - 1925 vintage ongoing maintenance diligence required, Oakland rent control limits occupied rent increases, BUT 10.4% cap + 18.3% CoC + 1.96x DCR + corner lot optionality justify risk experienced operators
Recommended Strategy: STRONG BUY - Strongest overall Bay Area deal session, 10.4% cap 18.3% CoC NOBE walking distance Pixar minutes two BART stations adjacent Berkeley = combination simply doesn't present regularly, corner lot 10,425 SF undervalued asset ADU optionality could add $200K+ asset value, new roof electrical 1.96 DCR operational bulletproof, at $178,125/unit location Berkeley/Emeryville buyers pay $300-400K/unit THIS entry-price advantage
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🏢 Oakland 498 25th 28-Unit - 9.39% COC 5 VACANT UNITS IMMEDIATE
📍 498 25th St, Oakland Uptown, CA 94612
💰 Price: $4,695,000 ($167,679/unit)
🏠 Units: 25 Residential + 3 Retail + Billboard, 1913 Building
🏦 Current CF: $110,260/yr (9.39% CoC) | Pro Forma: $208,260/yr (17.74% CoC)
9.39% CoC current, 5 vacant units immediate upside, billboard + retail income
Key Metrics:
Critical Numbers | Current | Pro Forma |
|---|---|---|
Down Payment (25%) | $1,173,750 | $1,173,750 |
Total Cash Required | $1,173,750 | $1,173,750 |
Gross Scheduled Income | $571,000/yr | $687,000/yr |
Annual Cash Flow | $110,260 | $208,260 |
CoC | 9.39% | 17.74% |
Cap Rate | 7.60% | 9.69% |
DSCR | 1.45 | 1.84 |
Total Return | 13.25% | 21.60% |
9.39% CoC Current Rents Strongest Cash Flow: $110,260/year net cash flow BEFORE any value-add execution = real bankable cash flow Day 1, strongest immediate multifamily return Bay Area deals analyzed session
5 Vacant Units Immediate Actionable: Units 3, 8, 13, 18, 27 delivered vacant close = re-lease market ($1,600-2,150) immediately add ~$9,350/mo ($112,200/year) gross income WITHOUT touching single existing tenancy
20.28% Rent Gap Current to Market: Significant below-market units exist (Unit 1: $831 → $1,950 = $1,119/mo gap, Unit 2: $1,044 → $2,150 = $1,106/mo gap), Oakland rent control means market resets vacancy only = patient-capital value creation 5-10 year hold
Four Income Streams Rare:
Residential rents: $551,200 current → $663,000 pro forma
Billboard rooftop: $14,400 current → $18,000 pro forma (long-term lease, zero management, pure NOI)
Laundry: $5,400 current → $6,000 pro forma
Retail 3 suites: New 5-year leases = income security next 5 years
1.45 DSCR Current Strong: Debt coverage 45% cushion above debt service, lender's own underwriting confirms income stability, BEFORE value-add execution
Submetered Gas Electricity MAJOR: Tenants pay own energy costs, owner utility exposure limited water trash common areas = structural operating cost advantage worth $15-25K/year versus master-metered equivalent
Capex Exceptional 1913 Building:
800-amp electrical new subpanels new wiring
New copper plumbing throughout
Recently updated roof
Seismic retrofit COMPLETED removed soft-story list
Owner absorbed $800K-$1.2M+ capital work inherit NO cost
Seismic Retrofit Critical: Removed Oakland soft-story list = eliminates regulatory insurance risk associated pre-1980 Oakland construction, specific Oakland regulatory risk derailed deals added unexpected six-figure costs, HERE already done walk in clean
5.75% 5yr Fixed Financing: Second-best financing session after San Pablo DSCR, on $3.521M loan every 25bps versus conventional saves ~$8,803/year debt service
Motivated Seller All Offers Considered: Pricing leverage available, even $100K off list improves CoC meaningfully, $50-150K negotiation moves CoC 9.39% toward 9.8-10%+
Special Assessments $21,351/Year: Notable line item CRITICAL understand nature duration before close, confirm fixed assessment multi-year obligation OR ongoing
Risk Level: MEDIUM - Oakland rent control limits rapid rent resets, special assessments need clarity, 1913 vintage ongoing maintenance, BUT 9.39% CoC current + 5 vacant units + seismic retrofit done + submetered utilities mitigate significantly
Recommended Strategy: STRONG BUY - Fill 5 vacancies close add $112,200/year gross income immediately, let Oakland rent control natural turnover work below-market long-termers over time, collect $110K+/year cash flow while building appreciates, negotiate $50-150K off asking improves already compelling deal
🏢 San Jose Berryessa 1244 Quincy 6-Unit - 5.5% COC BUT TURNKEY ZERO CAPEX
📍 1244 Quincy Dr, San Jose, CA 95132
💰 Price: $2,000,000 ($333,333/unit)
🏠 Units: 6×2BR/1BA, Brand New Roof/Siding, 10/10 School
🏦 Year 1 CF: $30,545/yr (5.5% CoC) | Year 10: $76,319/yr (13.6% CoC)
5.5% CoC BUT all capex done, 10/10 school, BART adjacent, patient capital
Key Metrics:
Critical Numbers | Year 1 | Year 10 | Year 20 |
|---|---|---|---|
Total Cash Required | $560,000 | $560,000 | $560,000 |
Annual Cash Flow | $30,545 | $76,319 | $144,547 |
CoC | 5.5% | 13.6% | 25.8% |
Property Value | $2,510,560 | $3,573,310 | $5,289,371 |
Total Equity | ~$1.03M | ~$2.32M | ~$4.48M |
Cap Rate | 6.9% | — | — |
Debt Coverage | 1.28x | — | — |
5.5% CoC Bay Area Reality Patient Capital: $2,545/month on $560,000 deployed = honest Day 1 return market where paying quality location long-term appreciation certainty, NOT cash flow machine = equity accumulation vehicle
6.9% Cap San Jose Berryessa Strong: Competitive pricing location, market doesn't give away Silicon Valley BART-adjacent multifamily double-digit caps, fair price what buying premium product
ALL Capex Done Genuinely Clean:
Roof siding BRAND NEW: December 2025
Windows energy-efficient: 2022
Copper repipe: 2016 = 9 years into 50-year life
5/6 kitchens renovated: Modern quartz counters new cabinetry appliances
New ownership inherits fully modernized asset NO capital call horizon: 5% CapEx reserve ($10,062/year) heavily conservative given capex profile, real CapEx exposure next 5-7 years MINIMAL making effective cash flow HIGHER than modeled
Piedmont Hills High School 10/10 Walkable: Family tenants choose location based schools have LOWEST turnover rates any rental market, not re-leasing units constantly = operational simplicity retention premium
Berryessa BART Proximity Employment: Drives perpetual tenant demand tech workers healthcare professionals commuters need transit access, tenant pool employed stable renewal-oriented
5% Income Growth Assumption Defensible: Berryessa historically outpaced broader San Jose rent growth given school BART commute advantages, sub-1% vacancy historically micro-market, Silicon Valley employment wage growth outpacing national CPI
10-Year Wealth Picture: $2.07M total profit on $560K invested, $2.32M equity, $76K/year cash flow = Berryessa hold thesis, 4.1x initial investment, NOT buying 2025 cash flow buying because Berryessa San Jose doesn't decline doesn't lose tenants doesn't stop appreciating
100% Occupied Zero Lease-Up Risk: Income starts Day 1, no vacancy period manage
Unit 6 Unrenovated Minor Value-Add: One unrenovated unit = next turnover modernizing match other five could push rent $100-200/mo above current adding $1,200-2,400/year gross income
1.28 DCR Adequate: Standard operational discipline required, maintain 5% vacancy assumption conservative buffer
$333,333/Unit Premium Pricing: Paying Silicon Valley prices Silicon Valley real estate, appreciation income growth story justifies 10-20 year hold BUT understand NO value-add discount, full-price turnkey
Risk Level: LOW - 100% occupied, all major capex done, 10/10 school BART adjacent, proven micro-market demand, BUT 5.5% CoC thin requires patient capital mindset
Recommended Strategy: BUY patient capital - Conservative turnkey fully renovated Bay Area multifamily one San Jose's most stable desirable rental micro-markets, return NOT monthly cash flow = $2.07M total profit Year 10 $4.48M equity Year 20 on $560K investment, 8x return deployed capital two decades one most economically durable rental markets United States
🏢 San Pablo 1937 Powell 6-Unit - 5.8% COC NO RENT CONTROL GAME CHANGER
📍 1937 Powell St, San Pablo, CA 94806
💰 Price: $1,695,000 ($282,500/unit)
🏠 Units: 6×2BR/1BA, 1972 Vintage, ONE Vacant Unit
🏦 Year 1 CF: $27,479/yr (5.8% CoC) | Cap: 6.9%
5.8% CoC NO rent control, DSCR 5.75%, vacant unit market reset
Key Metrics:
Critical Numbers | |
|---|---|
Down Payment (25%) | $423,750 |
Total Cash Required | $474,600 |
Gross Rent | $13,488/mo |
Annual Cash Flow | $27,479 ($2,290/mo) |
CoC | 5.8% |
Cap Rate | 6.9% |
DSCR | 1.31 |
Break-Even Ratio | 78.0% |
DSCR Loan Rate | 5.75% (best session) |
NO RENT CONTROL Single Most Important Feature: San Pablo NOT subject California AB 1482 statewide rent control provisions, city itself NO local rent ordinance = annual rent increases NOT capped, raise rents market EVERY vacancy push existing tenants market renewal proper notice
What East Bay Investors Pay Premiums For: In Berkeley limited CPI-tied increases, Oakland limited Rent Adjustment Program allowance, San Pablo raise to market = NO rent board fees NO just-cause eviction complexity NO annual increase ceilings
Rent Gap $350-550/Unit Capturable: Berkeley/Oakland equivalents trading $2,600-2,800/mo 2BR, San Pablo currently $2,248/mo average, 6 units × $350 increase = $2,100/mo ($25,200/year), at 6.9% cap = +$365K implied asset value rent normalization alone
5.75% DSCR Rate BEST Financing Session: 25-50bps better O'Farrell SF deal, 75-100bps better conventional investment loans, on $1,271,250 loan saves $790-1,060/mo debt service versus market rate = real cash flow protection built capital structure
1.31 DCR Current Rents Floor: BEFORE any value-add execution property already covers debt service 31% cushion, lender's DSCR qualification current rents confirms income strength independently
Vacant Unit Immediate Market Reset: One unit delivered vacant close = re-lease current market ($2,400-2,600 renovated San Pablo 2BR) capture premium immediately without waiting turnover, single unit re-leased $2,500 versus current $2,248 average adds $252/mo ($3,024/year) right out gate
Unit Renovations $200-350 Premium: East Bay workforce housing market modernized kitchen bath commands $200-350/mo premium classic-finish units, NO rent control ceiling execute improvements turnover reset full market, 6 units × $250 avg premium = $1,500/mo ($18,000/year) additional gross income fully executed
$282,500/Unit Versus Berkeley/Oakland $400-600K: Buying East Bay location benefits meaningful discount rent-controlled neighbors = entry-price advantage
1972 Vintage Systems Verification: Roof age HVAC condition electrical panel plumbing confirm due diligence, CapEx reserve 5% rent ($8,093/year) appropriate confirm NO near-term capital surprises
10-Year Total Profit: $3,744,909 on $474,600 invested = what non-rent-controlled fundamentals compound over time
Risk Level: MEDIUM - San Pablo neighborhood requires understanding, 1972 vintage needs verification, BUT NO rent control + 5.75% DSCR + vacant unit + Kaiser/BART proximity mitigate significantly
Recommended Strategy: BUY - Re-lease vacant unit immediately, execute unit renovations natural turnover capture $200-350/unit rent premium, let San Pablo's non-rent-controlled fundamentals compound wealth, rare East Bay feature investors pay premiums access here below-premium price
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