Issue #159May 25, 2026
KC 8-Unit Cash Flow First + LA Rent-Up Bet + Sacramento OZ New Build + Spring Valley House Hack
Deal Scout ran overnight and surfaced four deals. KC 8-unit at 10.05% cap and 1.77x DCR — best day-one cash flow in the batch. LA 12-unit at $112K/unit with 25% rent upside. Sacramento 2026-built OZ 12-unit. Spring Valley San Diego house hack at $1.075M with $7,050/mo in rent.
CASH FLOW FIRSTRENT-UP BETOZ NEW BUILDEQUITY HACK
CASH FLOW FIRST8.6/10
5401 E 27th Ter, Kansas City, MO 64128
Buy & Hold Multifamily · 8 Units$825,000
UNDERWRITING
Price Per Unit
$103,125
Cap Rate
10.05%
Est. CoC
15.6%
Cash Required
~$231,000
Annual Cash Flow
~$35,981
DCR
1.77x
Occupancy
100%
FINANCING
Down (25%)
$206,250
Closing (3%)
$24,750
Total Cash In
$231,000
Loan (75%)
$618,750 @ 6.5%
Annual Debt Service
~$46,944
Net Cash Flow
~$35,981/yr
OPPORTUNITY
Eight-unit apartment asset with 100% occupancy, 10.05% cap rate, and $103,125 per unit — the cleanest cash flow deal in this screen. At 6.5% DSCR loan terms the deal produces roughly 1.77x coverage and nearly $36,000 in estimated annual cash flow. The 1985/2024 built-renovated profile gives it a better story than a purely distressed Class C asset.
RISK
Class C Kansas City apartment asset — the renovation scope, rent roll, tenant quality, and insurance and tax resets matter more than the headline cap rate. If the 2024 renovation claim does not translate into clean systems and low near-term CapEx, the apparent CoC can compress fast.
VERDICT
Best day-one cash flow deal in this screen. The 1.77x DCR gives real operational cushion. First call to make. Ask for the T-12 immediately and verify the renovation scope.
RENT-UP BET7.2/10
1014 W 57th St, Los Angeles, CA 90037
Buy & Hold Multifamily · 12 Units$1,350,000
UNDERWRITING
Price Per Unit
$112,500
Cap Rate
6.54%
Est. CoC
3.0%
Cash Required
~$378,000
Annual Cash Flow
~$11,494
DCR
1.15x
OPPORTUNITY
Priced at $112,500 per unit and $194 per square foot — unusually low for a 12-unit Los Angeles apartment asset. The listing highlights approximately 25% rental upside, the main path to turning thin day-one return into a stronger hold.
RISK
Starting DCR is only 1.15x under 6.5% debt terms. South LA rent-up deals can be slow, regulated, and operationally heavy. Careful tenant-by-tenant diligence required before assigning value to the upside.
VERDICT
Worth a call because the basis is compelling, but only a buy if rent-control and tenant diligence support the upside.
OZ NEW BUILD7.0/10
3250-3262 Bozeman St, Sacramento, CA 95838
Buy & Hold Multifamily · 12 Units$3,195,000
UNDERWRITING
Price Per Unit
$266,250
Cap Rate
6.55%
Est. CoC
3.1%
Cash Required
~$894,600
Annual Cash Flow
~$27,521
DCR
1.15x
OPPORTUNITY
Rare 2026-built 12-unit residential income portfolio with four 3-bed/2.5-bath front homes and eight 2-bed/1-bath detached ADUs, plus Opportunity Zone eligibility. New construction reduces near-term CapEx risk versus older Class C apartments.
RISK
6.55% stated cap rate produces only 1.15x DCR at 6.5% loan terms. Nearly $895,000 cash required means equity has to be patient. Vulnerable to any underwriting miss in expenses, leasing, taxes, or insurance.
VERDICT
Good for a tax-aware buyer prioritizing low CapEx and OZ upside. Too thin to call a pure day-one cash-flow deal.
EQUITY HACK7.4/10
1040 Gillespie Dr, Spring Valley, CA 91977
House Hack · 2 Units$1,075,000
UNDERWRITING
Cap Rate
6.0% (listing)
FHA Down (3.5%)
~$37,625
Conv Down (5%)
~$53,750
Stated Rent
$7,050/mo
Owner Net Cost
~$4,300–$4,900/mo
DCR
N/A (owner-occupied)
OPPORTUNITY
2021-built 2-unit property with a 4-bed/2-bath and 3-bed/2-bath unit. Listing states $7,050/mo in total rent, creating a clear rent offset story. FHA 3.5% down keeps entry cash at approximately $37,625 before closing costs.
RISK
Still leaves an estimated owner net housing cost of $4,300–$4,900/mo after mortgage insurance, taxes, and insurance. Buyer must verify lender treatment of projected rent and FHA self-sufficiency requirements.
VERDICT
Best as an equity-building San Diego owner-occupant play, not a “live for free” house hack.
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