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?