Who says you can't cashflow in the Bay Area? Analyze this Deal!

[Calvin Kwan]

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?

[Brian Garlington]

If they are not getting rent it is not cashflow positive...........tenants posting signs like that is a big red flag and the fact that you probably wont be able to get the tenants out of there until late this year or early next year would have been dealbreakers for me. I never bet on appreciation. Just my 2 cents.