7813 Eureka (El Cerrito, CA - near Oakland/Berkeley)

[Adam Metz]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $750,000

This is a mid-century modern home built around 1954, and the neighborhood is all primarily in the same style. I bought the home in 2014 as a primary residence, and moved in 2021. In 2022, it will be turned into a rental property, and I'll be bringing in an investor who will take a position in the property as well. This investor would hold roughly 45% of the property, growing at $140k/yr.
Zillow listing is here, in case you'd like to take a look: https://www.zillow.com/myzillow/yourhome/18529338

What made you interested in investing in this type of deal?

I typically invest in venture, crypto, mutual funds and am looking to get into franchise restaurants, so I diversify with real estate.

How did you find this deal and how did you negotiate it?

This was an off-market listing, and it was done as a two-sided transaction with the realtor. I do not recommend that to any buyer, and I definitely would not do that again.

How did you finance this deal?

It was financed with a 30-year FHA loan, but a refi was done 5-6 times.

How did you add value to the deal?

I've done numerous additions to the building, and it's doubled in value since the purchase. Key additions and fixes were structural (sump pump, sewer lateral [mandatory], foundation bracing), but there were many cosmetic additions like recessed lighting, automated sprinklers, etc.

What was the outcome?

Property has doubled in value in 7 years.

Lessons learned? Challenges?

Never do a double-sided real estate transaction.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Very good broker, Erick Byrd at RPM Mortgage in Berkeley CA.

[Jay Hinrichs]

Nice job.. my brother in law is in the Sewer lateral bizz in your area his company is based in Richmond.  for him the mandatory sewer lateral repairs are BANK.  He just kills it.. Got to love Bay Area Real estate I know it changed my life.