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Hello Investors,

Welcome to Dealsletter #47! This issue features an exciting mix of investment opportunities, from a turnkey 10-unit multifamily property in Stockton to a luxury house hack in San Diego. We’re also highlighting two high-ROI house flips in San Francisco that cater to investors ready to transform and profit. Whether you're a seasoned investor or just starting out, these deals are packed with potential.

Multi-Family

Property: 419 W Flora St, Stockton, CA
Price: $1,200,000
Units: 10 (8 x 1-Bed/1-Bath, 2 x 2-Bed/1-Bath)
Cap Rate: 7.21%

Why This is a Great Investment 👉🏼 This stabilized, turnkey apartment complex offers cash flow from day one. Located near Stockton's Downtown Waterfront District, it features modernized units and is fully occupied at near-market rents. The HD camera security system and recent renovations add to its low-maintenance appeal, making it ideal for hands-off investors.

The Stats (25% Down) 📝

• Gross Rent: $137,200/year

• Operating Expenses: $51,859/year

• Net Operating Income: $86,041/year

• GRM: 8.38

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House Flip

Property: 357 Head St, San Francisco, CA
Price: $699,000
Beds/Baths: 3 Beds / 2 Baths
Square Feet: 1,000

Why This is a Great Investment 👉🏼 Located in a commuter-friendly neighborhood, this property features untapped potential for an ADU addition, which can significantly increase rental income or resale value. The drought-resistant backyard and extra bonus area make it a standout flip candidate.

More Important Info 👉🏼 This property is priced to sell. The San Francisco market is highly competitive, especially for houses with potential for flipping. Therefore, we recommend offering at least $50k over the asking price. The provided numbers are based on this purchase price.

The Stats (15% Down w/HML Loan at 10.95% 1 year term) 📝

• Purchase Price: $750,000

• Rehab Costs: $71,500

• ARV: $1,053,000

• Total Profit: $139,207

• ROI: 116.1%

🏆 Premium House Flip 🏆

This is a sneak peek of what’s in store for Premium Subscribers of Dealsletter.

Property: 836 Alabama St, San Francisco, CA
Listed Price: $799,000
Beds/Baths: 5 Beds / 2 Baths
Square Feet: 2,033

Why This is a Great Investment 👉🏼 This rare five-bedroom property is priced well below market value, offering tremendous upside in San Francisco’s competitive housing market. Expect bidding wars, so be prepared to go over asking price. With a conservative rehab estimate, the ROI on this flip is exceptional.

IMPORTANT INFORMATION 👉🏼 Please note that this property is severely under market value and priced to sell. Due to this, expect strong bidding wars and the need to bid well over asking price (We expect at least $150k over asking). Homes in this area typically sell in the $1.5–2 million range. Five-bedroom houses are rare in San Francisco. Additionally, since the property's condition is currently unknown from the Dealsletter team, our rehabilitation estimate remains conservative.

The Stats (15% Down w/HML Loan at 10.95% 1 year term) 📝

• Purchase Price: $950,000 ($150k over asking)

• Rehab Costs: $148,500

• ARV: $1,725,000

• Total Profit: $466,095

• ROI: 206.9%

Purchase & Rehab 🏷️

• Purchase Price: $950,000 ($150k over asking)

• Rehab Costs: $148,500

• Amount Financed: $956,000

• Downpayment: $142,500

• Purchase Costs: $28,500

• Total Cash Needed: $171,000

Financing (Purchase) 🏦

• Loan type: Hard money, Interest-Only, 1 Year

• Interest Rate: 10.95% (Current Hard Money Rates)

• Financing of: Price(85%), Rehab(100%)

• Loan Amount: $956,000

• LTC/LTV: 87% / 55.4%

• Loan Payment: $8,724

Assumptions & Projections 📈

• Holding Period: 6 Months

• Rehab Cost Overrun: 10%

Sale Analysis & Returns 💰

• ARV: $1,750,000

• Sell Costs: -$77,625

• Sale Proceeds: +$1,647,375

• Loan Repayment: -$956,000

• Holding Costs: $54,280

• Invested Cash: -$171,000

• Total Profit: +$466,095

This is just a preview. In the premium version, you’ll gain access to a comprehensive PDF document packed with relevant and investment-worthy information for each property featured in the newsletter. Stay tuned for more details!

House Hacker’s Dream

Property: 4325-4331 Clairemont Dr, San Diego, CA
Price: $2,500,000 (Suggested Offer: $2,375,000)
Units: 4 (2 x 3-Bed/2-Bath, 2 x 2-Bed/1-Bath)

Why This is a Great Investment 👉🏼 This luxury 4-plex in Clairemont offers incredible cash flow or a unique house hack opportunity. With new construction, owned solar, and panoramic views, the property is designed to attract high-income tenants. By living in one of the 2-bed units, you can reduce your effective mortgage to match area rent prices.

More Important Info 👉🏼 Based on Dealsletter's market analysis and the property's unique use case, which has affected its time on market, we believe $2,375,000 would be a strong competitive offer for this property. This property must be purchased with a 13% down payment as a house hack. Here's why 👇🏼

The maximum conventional loan limit on a 4-unit property is $2,072,250. At a purchase price of $2,375,000, you need to cover 13% as a down payment to qualify and make this house hack work.

The Stats (13% Down, Living in one unit) 📝

• Gross Rent (Living in 1 Unit): $11,800/month

• Operating Expenses: $2,570/month

• NOI: $9,230/month

• Loan Payment (13% Down): $13,333/month

• Effective Mortgage: $4,103/month (Market RENT for this area!)

• Tax Deductions/Benefits: $170,473

  • Dealsletter confirmed the land value of this property to obtain precise depreciation calculations.

  • Even if you reside in this property, it can still be claimed as a rental property, albeit at a 75% deduction rate, since you occupy only 25% of it.

What’s Brewing at Dealsletter ☕️

• More House Hack Opportunities: With rising mortgage rates (Yay again), we’re focusing on properties that can offer creative financing and live-in investment options. Think duplexes, triplexes, and ADU potential properties where you can live in one unit and rent out the rest.

• Spotlight on Emerging Markets: We’re expanding beyond California, keeping an eye on emerging cities that offer attractive cap rates and investor-friendly climates. We’ll highlight cities you might not have considered but are primed for growth.

• Dealsletter Success Stories: Have you closed on a property or found value through Dealsletter? We want to hear about it! Send us your story for a chance to be featured in our community section.

• Premium Version Coming Soon!
  Get ready for a premium option featuring in-depth investment metrics and exclusive content. More details, more value!

• More Properties in Each Premium Issue
  Our premium version will offer more properties per issue, giving you a wider range of investment opportunities.

A Big Thank You! 🙌

We're immensely grateful for our early subscribers. Your trust and engagement are the fuel that drives Dealsletter. We promise to keep delivering top-notch real estate insights and deals.

Until next time,

The Dealsletter Team