Telegraph Ave Uptown Oakland
This nine unit apartment building in Uptown Oakland was purchased in 2012 for $690k with two fantastic partners who expressed interest in investing with me. We bought the building with a commercial loan from Chase at 3.8% for 5 years.
Over the past 18 months we have turned over four of the units and increased rents by 10% while paying for nearly 25k in capital improvements and renovations on the interior. Here is what the investment looks like on paper:
Purchase price: $690k at 6.8% cap rate
Renovations and repairs: $35k
Rent increases: 12.5%
Current value: $950k
Increase in value: $260k at 6.8% cap rate