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  • #110: Silicon Valley House Hack + SF Million-Dollar Flip

#110: Silicon Valley House Hack + SF Million-Dollar Flip

TWO OFF MARKET PROPERTIES: Live FREE in San Jose, SF luxury flip with $909k profit, San Diego value-add, and Emeryville gut renovation

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San Jose 4-Plex House Hack - Live FREE in Silicon Valley

📍 Address: 939-941 S 7th St, San Jose, CA 95112
💰 Price: $1,095,000
🏠 Units: 4 Units
🏦 Monthly Cost: $1,428 | Market Rent Savings: $772/month

Why This is a Great Investment:

Live rent-free in Silicon Valley while THREE tenants pay your entire mortgage! This well-maintained 4-plex offers massive rental income while you live in one of the 1BR units. With just 5% down and $92k qualifying income, you're paying only $1,428/month to live in San Jose (vs $2,200 market rent) while building $75k+ wealth annually. When you move out, immediate positive cash flow of $772/month with optimization potential to $3,200+/month with ADU addition.

This is the HOLY GRAIL of house hacks - you live cheap, save money monthly, build equity, AND have positive cash flow when you move out.

The Stats (5% Down, Owner-Occupied) 📝

Financed Terms (Conventional)

Loan Type

30-year, Amortizing

Interest Rate

6.75% (owner-occupied)

Loan to Cost

95%

LTV

95%

Financing Of

Price (95%)

Loan Amount

$1,040,250

PMI

$260/month

House Hack Analysis

Purchase Price

$1,095,000

Down Payment

$54,750

Monthly P&I + PMI

$7,008

Property Tax

$1,140/month

Insurance

$300/month

Maintenance Reserve

$300/month

Total Housing Cost

$8,748/month

Rental Income (3 units)

$7,470/month

Your Monthly Cost

$1,278/month

Wealth Building Analysis 📝

Year

Principal Paydown

Appreciation (5%)

Tax Benefits

Total Wealth

Year 1

$11,040

$54,750

$3,000

$68,790

Year 2

$11,760

$57,488

$3,000

$72,248

Year 3

$12,540

$60,362

$3,000

$75,902

Year 5

$14,400

$67,156

$3,000

$84,556

5-Year Total

$65,000

$301,000

$15,000

$381,000

True Monthly Cost After Wealth Building:

  • Gross Cost: $1,278

  • Less Wealth Building: -$5,732

  • Net Benefit: +$4,454/month

Future Strategy Options 📝

Strategy

Timeline

Monthly Cash Flow

Move Out (Current Rents)

Year 2+

+$772/month

Optimize Rents

Ongoing

+$1,602/month

Add ADU (0.15 acre)

Year 3-4

+$3,272/month

Short-Term Rental Mix

Year 2+

+$1,722/month

Income Qualification:

  • Required Annual Income: ~$92,000

  • Much easier than expected for Silicon Valley!

OFF MARKET: SF West Portal Luxury Flip With $909K Profit

📍 Address: 160 Wawona St, San Francisco, CA 94127
💰 Price: $2,050,000
🏠 Units: Single Family
🏦 ROI: 444% | ARV: $3,600,000

Why This is a Great Investment:

Off-market historic home with MASSIVE profit potential! This 4BR/5BA, 3,198 SF property offers $909k profit based on premium West Portal comps. Forest Side comparable at $1,247/sf validates conservative $3.6M ARV with upside to $4M. The 5 bathrooms and original 1920s character create irreplaceable value in SF's premium family neighborhood.

This is a GRAND SLAM flip with institutional-quality profit margins.

The Stats (10% Down, Hard Money) 📝

Hard Money Terms

Loan Type

Interest-Only, 1 Year

Interest Rate

10.45%

Loan to Cost

90%

LTV

51.4%

Financing Of

Price (90%), Rehab (100%)

Investment Metrics

Purchase Price

$2,050,000

Rehab Budget

$250,000 (luxury finishes)

Down Payment

$205,000

Total Project Cost

$2,300,000

Monthly Interest

$16,057

Holding Costs (6 months)

$100,460

ARV

$3,600,000

Net Profit

$909,640

ROI

444%

Comparable Analysis Supporting ARV 📝

Recent Sale

Distance

Price

Price/SF

109 Forest Side

0.06 mi

$3,850,000

$1,247/sf

245 Santa Clara

0.33 mi

$4,050,000

$1,362/sf

68 Madrone

0.11 mi

$3,435,000

$1,231/sf

1416 7th Ave

0.50 mi

$3,750,000

$1,147/sf

Conservative Target: $1,125/sf × 3,198 = $3,600,000 Realistic Target: $1,188/sf × 3,198 = $3,800,000 Aggressive Target: $1,251/sf × 3,198 = $4,000,000

Three Profit Scenarios 📝

ARV

Net Profit

ROI

$3,600,000 (Conservative)

$909,640

444%

$3,800,000 (Realistic)

$1,109,640

541%

$4,000,000 (Aggressive)

$1,309,640

639%

Key Value Drivers:

  • 5 bathrooms (rare differentiator)

  • 3,198 SF (large for area)

  • Original 1920s character

  • Forest Side adjacent location

  • Premium West Portal address

Learn from this investor’s $100m mistake

In 2010, a Grammy-winning artist passed on investing $200K in an emerging real estate disruptor. That stake could be worth $100+ million today.

One year later, another real estate disruptor, Zillow, went public. This time, everyday investors had regrets, missing pre-IPO gains.

Now, a new real estate innovator, Pacaso – founded by a former Zillow exec – is disrupting a $1.3T market. And unlike the others, you can invest in Pacaso as a private company.

Pacaso’s co-ownership model has generated $1B+ in luxury home sales and service fees, earned $110M+ in gross profits to date, and received backing from the same VCs behind Uber, Venmo, and eBay. They even reserved the Nasdaq ticker PCSO.

Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.

San Diego 6-Plex Value-Add With Seller Financing

📍 Address: 4834-44 Lantana Dr, San Diego, CA 92105
💰 Price: $1,260,000
🏠 Units: 6 Units
🏦 Cap Rate: 5.60% Current | 7.97% at Market + Seller Financing Available

Why This is a Great Investment:

City Heights value-add opportunity with 30% rent upside AND seller financing available! This 6-unit property on a massive 12,584 SF lot offers below-market rents, storage income potential, and proximity to SDSU. Currently negative cash flow transforms to $22,968 annual profit with market rents, while the huge lot provides ADU development potential for $60k+ annual income.

The seller financing option makes this even more attractive with below-market rates.

The Stats (25% Down, Traditional) 📝

Financed Terms (Conventional)

Loan Type

30-year, Amortizing

Interest Rate

7.25%

Loan to Cost

75%

LTV

75%

Financing Of

Price (75%)

Loan Amount

$945,000

Current Performance

Purchase Price

$1,260,000

Down Payment

$315,000

Current Monthly Income

$8,994

Operating Expenses (32%)

$2,840/month

Current NOI

$5,885/month

Loan Payments

$6,450/month

Current Cash Flow

-$565/month

Market Rent Transformation 📝

Unit Type

Current Rent

Market Rent

Monthly Upside

2BR Units (2)

$1,782 each

$2,200 each

+$836 total

1BR Units (4)

$1,345 each

$1,879 each

+$2,136 total

Storage/Laundry

$50

$550

+$500

Total Monthly Increase

+$3,472

Market Rent Performance:

  • New Monthly Income: $12,466

  • New Annual Income: $149,592

  • New NOI: $100,367

  • New Cash Flow: $1,914/month

  • New Cash-on-Cash: 7.3%

Additional Value-Add Opportunities 📝

Strategy

Investment

Annual Income

ROI

Storage Monetization

$1,000

$7,200

720%

Parking Revenue

$500

$4,500

900%

Laundry Upgrade

$5,000

$3,600

72%

ADU Development (2 units)

$300,000

$52,800

18%

Seller Financing Option:

  • 20% down: $252,000

  • Seller carries: $1,008,000 at 6.5%

  • Better cash flow + easier qualification

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