6 Unit Apartment Under-Market Plus $120,000 Cash Back 10%+ CoCR

[Marc Dela Cruz]

This deal consists of a 6-unit apartment complex with tenant parking lot plus a generous lot zoned for a multifamily building. All 6 units are 2-bedroom/1-bathroom each.

The property is located in Oakland, CA and has been poorly managed and severely under-capitalized over the years, which offers tremendous potential to purchase substantially below-market, renovate, and reposition the property in a thriving marketplace.

The property will be purchased for $1,250,000 (minus $120,000 credit) equals net price at $1,130,000 or $188,000 per unit, which is an under-market value-buy in the Bay Area.

Based on comparable apartment sales, the "as-is" value of the property is conservatively between $1.2MIL and $1.4MIL upon acquisition. And once rehabbed and re-positioned, the conservative value would be between $1,800,000 to $2,000,000.

After completing the improvements and raising the rents to market rates in 18 months after acquisition, the net operating income is projected to increase over $60,000, which corresponds to $1,200,000 in added value, applying the market capitalization rate of 5%.

Anticipated exit profit is $800,000 (including annual cash flow) at sale after commissions and closing costs.

I have equitable interest in this property and I am selling my contract.

Qualified buyers must sign a Non Circumvent Non Disclosure (NCND) agreement before seeing any property information.

Please feel free to call or message me with any questions or to request more information.

Marc Dela Cruz
Email: [email protected]
Mobile: (510) 566-1418