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San Jose SoFA District Triplex - $327K PROFIT WITH STRATEGIC NEGOTIATION

📍 Address: 712 S 2nd St, San Jose, CA 95112
💰 List Price: $1,150,000 | Target: $1,000,000
🏠 Property: 7BR/3BA Triplex, 2,470 SF, Built 1898
🏦 ARV: $1,622,000 | Profit: $327,512 | ROI: 195.8%

Why This Requires Aggressive Negotiation:

Historic 1898 Victorian triplex in San Jose's trendy SoFA District with massive profit potential - but ONLY if purchased at $1M or below. The property has been on market 42 days with a $64K price cut, signaling seller motivation. At the current $1.15M asking price, returns drop to just 76% ROI. The location near San Jose State and SoFA's creative district provides strong fundamentals, but success depends entirely on negotiation execution.

This is a high-stakes flip requiring both negotiation skills and historic property expertise.

Critical Price Sensitivity Analysis 📝

Purchase Price Scenarios

$1,150,000

$1,100,000

$1,000,000

Down Payment (10%)

$115,000

$110,000

$100,000

Net Profit

$177,512

$227,512

$327,512

Cash-on-Cash ROI

76%

139%

196%

Investment Rating

Poor

Marginal

Strong

Flip Analysis (10% Down Hard Money) 🚀

Investment Metrics (At $1M Purchase)

Target Purchase Price

$1,000,000

Down Payment (10%)

$100,000

Loan Points/Fees

$18,000

Cash to Close

$125,500

Historic Renovation Budget

$138,000

Total Cash Required

$125,500

Profit Projections 💰

6-Month Historic Flip Timeline

Realistic ARV

$1,622,000

Total Project Cost

$1,209,278

Selling Costs (5.5%)

$89,210

Holding Costs

$41,778

Net Profit

$327,512

Cash-on-Cash ROI

195.8%

Annualized ROI

391.6%

Historic Renovation Requirements 🏗️

Category

Budget

Critical Success Factors

Exterior Restoration

$18,000

Historic facade cleaning, porch restoration

Interior (3 Units)

$99,000

Kitchen/bath renovations, flooring, paint

Systems Updates

$18,000

HVAC, electrical, plumbing

Contingency (10%)

$16,150

Essential for 1898 construction

Negotiation Strategy 📊

Seller Motivation Indicators

Days on Market

42 days

Recent Price Reduction

$64,000

Original List

$1,214,000

Negotiation Leverage

Strong

Critical Success Factors:

  • Must negotiate to $950K-$1M (deal only works below $1.05M)

  • Historic construction requires expert contractor

  • San Jose permit timeline must be managed

  • SoFA location justifies premium ARV

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East San Jose Quick Flip - 52% RETURNS IN 3 MONTHS

📍 Address: 1420 Orlando Dr, San Jose, CA 95122
💰 Price: $850,000
🏠 Property: 3BR/1BA + ADU, 1,210 SF + Bonus Space
🏦 ARV: $1,125,000 | Profit: $69,989 | ROI: 52%

Why This Works as Fast Flip:

Cosmetic renovation opportunity with ADU and bonus spaces requiring only 3-month timeline. The quick turnaround minimizes interest carry at 10.45% hard money rates, while the ADU provides value differentiation in the market. Success depends on fast execution and hitting the aggressive 90-day timeline.

This represents a solid bread-and-butter flip with manageable scope and quick capital recycling.

Flip Analysis (10% Down Hard Money) 📝

Investment Metrics

Purchase Price

$850,000

Down Payment (10%)

$85,000

Loan Points/Fees

$15,354

Cash to Close

**$106,854

Cosmetic Renovation

$93,500

Total Cash Required

$106,854

3-Month Timeline Advantage 🚀

Fast Flip Economics

Holding Period

3 months only

Hard Money Interest

$22,426

Total Holding Costs

$27,782

Fast Execution Savings

$15K+ vs 5-month flip

Profit Analysis 💰

Conservative 3-Month Flip

ARV

$1,125,000

Total Project Cost

$1,055,011

Net Profit

$69,989

Cash-on-Cash ROI

52%

Annualized ROI

208%

Timeline Sensitivity 📊

Hold Period Impact

3 Months

4 Months

5 Months

Interest Cost

$22,426

$29,901

$37,376

Net Profit

$69,989

$62,514

$55,039

ROI

52%

46%

41%

Critical Execution Requirements:

  • Contractor ready Day 1

  • Materials ordered before close

  • 3-month timeline non-negotiable

  • ADU must be legally permitted

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