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  • #111: Oakland Opportunity Zone 7-Plex + SF Luxury Development

#111: Oakland Opportunity Zone 7-Plex + SF Luxury Development

This week's PRO-only issue: Opportunity Zone tax benefits, luxury development syndication, Kansas City BRRRR goldmine, and 8% cap rate cash machine

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Oakland 7-Plex Opportunity Zone With Tax Benefits

📍 Address: 2004 27th Ave, Oakland, CA 94601
đź’° Price: $995,000 ($142,143/unit)
🏠 Units: 7 Units
🏦 Cap Rate: 6.11% Current | Cash Flow: Break-even to $497/mo

Why This is a Great Investment:

Corner lot property in Oakland's Opportunity Zone with 30%+ rent upside and MASSIVE tax benefits! Two buildings (5-unit + duplex) with recent upgrades, fully occupied, and priced at just $142k/unit. The real value is in the Opportunity Zone designation - defer capital gains taxes, 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!

Current rents are severely below market, offering immediate optimization potential while enjoying institutional-quality tax advantages.

Key Metrics 📝

Investment Overview

Purchase Price

$995,000

Down Payment (25%)

$248,750

Current Cash Flow

-$23/month (break-even)

Optimized Cash Flow

$497/month

Cash-on-Cash (optimized)

2.4%

Rent Optimization Strategy 📝

Unit Type

Current Rent

Market Rent

Upside

2BR Unit

$1,384

$2,000

+$616

1BR Units (6)

$577 each

$1,200 each

+$623 each

Total Monthly Increase

+$4,354

Opportunity Zone Tax Benefits:

  • Defer capital gains taxes immediately

  • 15% reduction on deferred gains after 7 years

  • ZERO taxes on property appreciation after 10 years

  • Perfect for investors with capital gains to defer

5-Year Projection 📝

  • Property Value @ 6% cap: $1,320,000

  • Total Profit: $325,000 + tax savings

  • Effective ROI: 30%+ with tax benefits

SF Glen Park Luxury Development Syndication

📍 Location: Glen Park, San Francisco, CA
đź’° Investment: $2,000,000 equity raise
🏗️ Project: Ground-up 4-story luxury home
🏦 Target ROI: 25% | Timeline: Mid-2026 completion

Why This is a Great Investment:

Exclusive opportunity to invest in a luxury ground-up custom residence in Glen Park, one of San Francisco's most desirable neighborhoods! This modern 4-story home with elevator, roof deck, and panoramic views offers investors a 25% ROI ($602,875) with 18-24 month timeline. Conservative underwriting with $6.2M projected sale vs $3.9M total cost provides substantial profit margins.

Premium location with approved plans and experienced development team reduces execution risk.

Investment Structure 📝

Project Economics

Total Project Cost

$3,902,500

Projected Sale Price

$6,200,000

Total Profit

$2,411,500

Investor Returns (25% ROI)

$602,875

Timeline

18-24 months

Project Highlights 📝

  • 4-story luxury design with elevator and roof deck

  • Glen Park location - tech executive target market

  • Approved plans ready for construction

  • Conservative underwriting with 5% cost overrun buffer

  • Multiple exit scenarios from $5.8M to $6.6M sale

Syndication Details:

  • Minimum investment: $100,000

  • Accredited investors only

  • Maximum 20 investors

  • Professional development team

Former Zillow exec targets $1.3T market

The wealthiest companies tend to target the biggest markets. For example, NVIDIA skyrocketed nearly 200% higher in the last year with the $214B AI market’s tailwind.

That’s why investors are so excited about Pacaso.

Created by a former Zillow exec, Pacaso brings co-ownership to a $1.3 trillion real estate market. And by handing keys to 2,000+ happy homeowners, they’ve made $110M+ in gross profit to date. They even reserved the Nasdaq ticker PCSO.

No wonder the same VCs behind Uber, Venmo, and eBay also invested in Pacaso. And for just $2.90/share, you can join them as an early-stage Pacaso investor today.

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.

Kansas City BRRRR/Flip Hybrid With $62K Instant Equity

📍 Address: 2642 Norton Ave, Kansas City, MO 64127
đź’° Price: $60,000
🏠 Property: 3BR/1BA, 1,216 SF
🏦 ARV: $122,000 | Instant Equity: $62,000

Why This is a Great Investment:

Half-price property with MASSIVE instant equity offering two profitable exit strategies! At just $49/SF purchase price with $122k ARV, you can either BRRRR for long-term cash flow or flip for immediate $14k+ profit. The beauty is the flexibility - start as flip, convert to BRRRR if needed. This is how wealth is built in Kansas City with minimal capital requirements.

Perfect for first-time investors or portfolio builders wanting multiple exit strategies.

Strategy Comparison 📝

Metric

BRRRR Strategy

Flip Strategy

Cash Required

$7,000

$6,000

Timeline to Profit

6 months

4 months

Net Profit Year 1

$656 cash flow

$14,370

Monthly Cash Flow

$138

$0

5-Year Total Return

$23,280

$14,370

BRRRR Analysis (Recommended) 📝

Investment Metrics

Purchase + Rehab

$95,000

ARV

$122,000

Refinance (75% LTV)

$91,500

Cash Left in Deal

$7,000

Monthly Cash Flow

$138

Cash-on-Cash Return

23.7%

Renovation Budget: $35,000 total

  • Kitchen: $8,000 | Bathroom: $4,000 | Flooring: $5,000

  • Paint/Drywall: $6,000 | Systems: $5,000 | Exterior: $4,000

The Verdict: BRRRR wins for wealth building - get a cash-flowing property for essentially $7k out of pocket!

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