8th Street Oakland 7 Units
This historic 100+ year old building was bought in 2013 with two other partners, one happened to be a client and mentor with over 30 years experience owning income property in the Bay Area. I showed him this property to get his input and he liked it so much he offered to partner with me.
This property posed significant challenges as it has a brick foundation and many years of deferred maintenance. Lenders were not willing to finance a building with a brick foundation and I was coming out of a partial exchange. Consequently it took months of negotiating and structuring of ownership to close on this victorian 7 unit building in Uptown Oakland.
Purchase price: $600k at 7% projected cap rate
Renovations and repairs: $40k
Rent increases: 16.5%
Current value: $900k
Increase in value: $300k at 7% cap rate
Current Rent Roll: $102k/yr
Original Rent Roll: $86k/yr