\Hello Investors,
Welcome to Dealsletter #52 - your trusted source for handpicked real estate investment opportunities! This week, we’re showcasing four incredible properties, each catering to a specific investment strategy: a value-add BRRRR opportunity in Kansas City, two house hacks in San Diego and Concord for living almost rent-free, and a multifamily gem in San Jose offering strong cash flow with room for value growth. Let’s dive into the details!
🚨 Note on Numbers: All calculations for investment properties are based on a 25% down payment and a current interest rate of 7.10%, unless otherwise stated. For house hacks, we assume a 5% down payment with PMI at 0.4% and a 6.42%(FHA) interest rate. We do the math so you can focus on what matters – the deals!
👉🏼 Stay up to date: What’s the latest on mortgage rates?
📈 The Stats: Each listing comes with detailed investment metrics like cap rates, GRM, and special financing options where available.
This Weeks Deals 🏘️
Multi-Family BRRRR in Kansas City, MO
Property: Lexington Apartments, 12 Units
Cap Rate: 19.4%
House Hack in San Diego, CA
Property: Pardee St, 5 Units
Cap Rate: 4.5%
House Hack in Concord, CA
Property: Kenwall Rd, 4 Units
Cap Rate: N/A (House Hack)
Multi-Family OR House Hack in San Jose, CA
Property: Southwest Expressway, 4 Units
Cap Rate: 6.3%
Lexington Avenue Apartments - BRRRR Opportunity
Price: $549,000
Cap Rate: 6.3%
Investment Strategy: BRRRR
Why This is a Great Investment 👉🏼 The Lexington Avenue Apartments offer a stalled project opportunity in the historic Pendleton Heights neighborhood. With completed CapEx like new HVAC systems and roofs, this is a fantastic chance to finish the remodel, refinance, and rent at market rates. Located in a Designated Opportunity Zone, the property provides additional tax benefits.
The Stats (Commercial Hard Money at 10% Down) 📝
Purchase Price: $500,000
Rehab Costs: $264,000
ARV: $1,080,000
Gross Rent: $13,200/month
NOI: $8,082/month
Cash Flow: STRONG
Cash Out Refi: $59,648
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Modern 5-Unit House Hack in San Diego
Address: 322 S Pardee St, San Diego, CA
Price: $1,750,000
Cap Rate: 4.5%
Investment Strategy: House Hack
Why This is a Great Investment 👉🏼 This newly constructed 5-unit property includes four 1-bed, 1-bath units and a renovated 2-bed, 1-bath front house. Modern amenities like central HVAC, in-unit laundry, and stainless steel appliances make this a low-maintenance, high-yield property. Live in one unit and rent out the rest!
Important Information 🚨 This property, being a five-unit building, won’t qualify for owner-occupied loans and will likely require a 20-25% down payment as a house hack. Despite this, we strongly recommend house hacking this property to essentially live rent-free in one of the most expensive cities in America.
The Stats (Living in the 1 Bed / 1 Bath Units) 📝
Gross Rent: $10,395/month
Operating Expenses: $2,853/month
NOI: $7,542/month
Loan Payment: $8,607/month
Effective Mortgage: $1,066/month
Upside Potential in Concord - House Hack Opportunity
Address: 1260 Kenwal Rd, Concord, CA
Price: $1,500,000
Cap Rate: Moderate with Upside
Investment Strategy: House Hack
Why This is a Great Investment 👉🏼 This well-maintained fourplex offers three 2-bed, 1-bath units and one 1-bed, 1-bath unit. Live in the 1-bed unit while renting the others, and as tenants move out, raise rents to market rates. After a year, move out to fully capitalize on this property’s strong cash flow.
The Stats (5% Down, Living in the 1 bed unit) 📝
Gross Rent: $7,050/month
Operating Expenses: $1,575/month
Loan Payments: $9,324/month
Effective Mortgage: $3,849/month
San Jose Multifamily - Value Add or House Hack
Address: 1970 Southwest Expy, San Jose, CA
Price: $1,950,000
Cap Rate: 6.3%
Investment Strategy: Multifamily or House Hack
Why This is a Great Investment 👉🏼 Located in Silicon Valley, this quadplex offers a fantastic unit mix: one 3-bed, 2-bath owner’s unit, two 2-bed, 2-bath units, and one 2-bed, 1-bath unit. Rent out all units for solid cash flow or live in one and enjoy a reduced mortgage in one of the country’s hottest markets.
The Stats (25% Down, Investment) 📝
Gross Rent: $14,200/month
Vacancy: -$994/month
Operating Expenses: $3,286/month
Taxes: $1,791/month
Insurance: $175/month
Maintenance(5%): $660/month
Capital Expenditures(5%): $660/month
NOI: $12,234
Cash Flow: Moderate
Cap Rate: 6.3%
The Stats (5% Down) 📝
Gross Rent: $10,800/month
Operating Expenses: $1,966/month
Loan Payment: $11,916/month
Effective Mortgage: $3,081/month
What’s Brewing at Dealsletter ☕️
More House Hack Opportunities: With rising mortgage rates (Yay again), we’re focusing on properties that can offer creative financing and live-in investment options. Think duplexes, triplexes, and ADU potential properties where you can live in one unit and rent out the rest.
Spotlight on Emerging Markets: We’re expanding beyond California, keeping an eye on emerging cities that offer attractive cap rates and investor-friendly climates. We’ll highlight cities you might not have considered but are primed for growth.
Dealsletter Success Stories: Have you closed on a property or found value through Dealsletter? We want to hear about it! Send us your story for a chance to be featured in our community section.
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A Big Thank You! 🙌
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Until next time,
The Dealsletter Team
Disclaimer: The content provided through Dealsletter, including investment metrics, property analysis, and rewards materials, is for informational and educational purposes only. It does not constitute financial, legal, or investment advice. Always conduct your own due diligence or consult a licensed professional before making any investment decisions. Dealsletter assumes no responsibility for any financial outcomes resulting from actions taken based on the information provided.