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- #109: HUGE Syndication Play + Opportunity Zone Strategies + San Diego House Hack
#109: HUGE Syndication Play + Opportunity Zone Strategies + San Diego House Hack
This week's issue has something for every strategy—Opportunity Zone plays, house hacks, value-adds, and fire damage flips
Kevin
August 18, 2025
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Lincoln Waterfront Development - MASSIVE 349-Unit Syndication Opportunity
đź“Ť Location: Lincoln, Placer County, CA
đź’° Investment Needed: $97,000,000
🏗️ Project: 349 Apartments + 45,000 SF Commercial
🏦 Projected Equity: $84,490,000 | Target LP IRR: 15-18%
Why This is a Great Investment:
Trophy waterfront mixed-use development with APPROVED site plans! This massive 349-unit apartment complex (269 market + 80 affordable) plus 45,000 SF of commercial space offers institutional-quality returns in Sacramento's hottest growth corridor. With approved entitlements, deferred impact fees, and waterfront location, this is a once-in-a-lifetime syndication opportunity targeting $84M+ in projected profits over 7-10 years.
This is how syndicators build generational wealth - approved trophy developments with massive scale and institutional exit potential.
Reach out to the broker via our link above for details on this large syndication deal as well as the offering memorandum.
The Stats (Syndication Structure) đź“ť
Project Economics | |
|---|---|
Total Project Cost | $136,000,000 |
New Capital Needed | $97,000,000 |
Projected Value (4% cap) | $220,490,000 |
Projected Equity | $84,490,000 |
Development Timeline | 3 years |
Hold Period | 4-7 years |
Revenue Projections | |
|---|---|
Market-Rate Units (269) | $8,858,520/year |
Affordable Units (80) | $1,632,960/year |
Commercial Space | $1,470,000/year |
Total Annual Income | $10,471,821 |
Net Operating Income | $8,819,556 |
Syndication Structure đź“ť
Investment Terms | |
|---|---|
Equity Raise | $97,000,000 |
GP/LP Split | 70/30 (after pref) |
LP Preferred Return | 8% |
Target LP IRR | 15-18% |
Target LP Multiple | 2.0-2.5x |
GP Target IRR | 25-30%+ |
Project Highlights:
Site Plan APPROVED (October 2022)
Waterfront location (trophy asset)
Mixed-use diversification
Deferred impact fees ($19M)
Sacramento growth market
Institutional exit potential
Risk Considerations:
Large capital requirement
3-year construction timeline
Interest rate sensitivity
Construction cost inflation
Market timing execution
Oakland Opportunity Zone Cash Monster With Tax Benefits
đź“Ť Address: 2023 80th Ave, Oakland, CA 94621
đź’° Price: $1,100,000
🏠Units: 5 Units
🏦 Cap Rate: 8.90% | Tax Strategy: Opportunity Zone advantages
Why This is a Great Investment:
This East Oakland property delivers an incredible 8.90% cap rate with immediate upside PLUS massive tax benefits! Located in a federal Opportunity Zone with 1:1 parking (rare!), featuring one vacant unit ready for immediate income boost and market rents $500+ below current. The tax advantages are enormous - defer capital gains, get 15% reduction after 7 years, and pay ZERO taxes on appreciation after 10 years. This is how you build tax-free wealth in Oakland!
The vacant 4BR unit alone adds $43,200 annual income when leased, while the Opportunity Zone location provides generational tax advantages.
The Stats (25% Down, Traditional) đź“ť
Financed Terms (Conventional) | |
|---|---|
Loan Type | 30-year, Amortizing |
Interest Rate | 7.25% |
Loan to Cost | 75% |
LTV | 75% |
Financing Of | Price (75%) |
Loan Amount | $825,000 |
Investment Metrics | |
|---|---|
Purchase Price | $1,100,000 |
Down Payment | $275,000 |
Purchase Costs | $33,000 |
Total Cash Needed | $308,000 |
Current Income (4 units) | $9,476/month |
With Vacant Unit Filled | $13,076/month |
Operating Expenses (35%) | $4,568/month |
Stabilized NOI | $8,508/month |
Loan Payments | $5,632/month |
Stabilized Cash Flow | $2,876/month |
Cash-on-Cash Return | 12.5% |
Value-Add Strategy Analysis đź“ť
Opportunity | Current | Market | Monthly Upside |
|---|---|---|---|
Unit 3 (4BR/2BA) | VACANT | $3,600 | +$3,600 |
2BR Units (4 units) | $2,369 each | $2,600 each | +$924 total |
Total Monthly Increase | +$4,524 |
Market Rent Performance:
Monthly Income: $14,000
Annual Income: $168,000
New NOI: $109,200
New Cash Flow: $3,688/month
New Cash-on-Cash: 16.1%
Opportunity Zone Tax Benefits đź“ť
Benefit | Timeline | Impact |
|---|---|---|
Capital Gains Deferral | Immediate | Defer taxes on invested gains |
10% Tax Reduction | After 5 years | Reduce deferred gain by 10% |
15% Tax Reduction | After 7 years | Reduce deferred gain by 15% |
ZERO Taxes on Appreciation | After 10 years | Pay NO taxes on property gains |
Example: $100k Capital Gain Invested
Year 10 Property Value: $1.9M
Total Appreciation: $800k
Tax Savings: $190k+ (at 23.8% cap gains rate)
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Sacramento Cash Cow With 9.29% Cap Rate
đź“Ť Address: 5341 Young St, Sacramento, CA 95824
đź’° Price: $728,000
🏠Units: 5 Units
🏦 Cap Rate: 9.29% | Expenses: 15.4% (Incredible!)
Why This is a Great Investment:
This Fruitridge Manor property delivers an outstanding 9.29% cap rate with 100% occupancy and an incredibly low 15.4% expense ratio! Currently generating $22,884 annual cash flow with $1,395/month in rent upside potential (21% increase). The 2BR unit alone is $540/month below market while the exceptionally low expenses create a cash flow machine. Located in an Opportunity Zone for additional tax benefits!
This is Sacramento investing at its finest - immediate cash flow with simple optimization upside.
The Stats (25% Down, Traditional) đź“ť
Financed Terms (Conventional) | |
|---|---|
Loan Type | 30-year, Amortizing |
Interest Rate | 7.25% |
Loan to Cost | 75% |
LTV | 75% |
Financing Of | Price (75%) |
Loan Amount | $546,000 |
Current Performance | |
|---|---|
Purchase Price | $728,000 |
Down Payment | $182,000 |
Current Monthly Income | $6,655 |
Operating Expenses (15.4%!) | $1,022/month |
Current NOI | $5,633/month |
Loan Payments | $3,726/month |
Current Cash Flow | $1,907/month |
Cash-on-Cash Return | 12.6% |
Rent Optimization Strategy đź“ť
Unit Type | Current Rent | Market Rent | Monthly Upside |
|---|---|---|---|
1BR Unit 1 | $1,300 | $1,550 | +$250 |
1BR Unit 2 | $1,195 | $1,550 | +$355 |
1BR Unit 3 | $1,450 | $1,550 | +$100 |
1BR Unit 4 | $1,400 | $1,550 | +$150 |
2BR/2BA Unit | $1,310 | $1,850 | +$540 |
Total Monthly Increase | +$1,395 |
Market Rent Performance:
New Monthly Income: $8,050
New Annual Income: $96,600
New NOI: $84,340
New Cash Flow: $3,302/month
New Cash-on-Cash: 21.8%
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