New Listing Details
Walk to BART and downtown Hayward. This 4 unit property has a single family (3 bedroom) home , with a detached duplex and separate studio.
The home is currently rented a $2700 per month. Both 1 bedroom units in the duplex are currently vacant. Market rents for these nice and clean units is $1900. The studio unit is currently vacant and market rent would be $1350.
11.5 Gross Rent Multiplier (GRM) and 5.4 CAP rate!
Listing price: $1,095,000.
For any further information on this new listing, please feel free to call or email me.
Recent Closing Update
The 4 plex on Adeline, Berkeley closed earlier this week. The offer was over $250,00 over the asking price, and was received after the first tour. We closed with no concessions or credits. This is an example of how aggressive buyers are right now with record low mortgage rates, uptick in rents and lowering of vacancies.
Outlook for East Bay rents
At this point, most employers have already released information about dates for employees coming back to work. UC Berkeley is bringing students back and PGE is working on their new HQ at Lake Merritt. All of these signs point to getting back to pre-Covid rents and vacancy rates. August is always the busiest time of the year for renters looking for a new place to live.
With a lot of companies offering “hybrid” flex work schedules, tenants are still looking for a “Work From Home” layout, if possible. This may be a permanent change, but we will see.
If you are having trouble getting a vacancy filled or have questions, please reach out. Remember that it is better to do a “temporary rent reduction” rather than lowering the rent. This is true for existing tenants are new tenants.
Current Sales Market
If you are thinking about selling in the next 6-12 months, then starting the process now would be a good idea. The market is strong, as buyers are still paying prices based on income that is similar to Pre-Covid.
Also, current interest rates for loans are so low that buyers are being aggressive.
Then the issue that has come up is: How do I defer the capital gains taxes.
1) Delaware Statutory Trust. Click DST Tax Deferral,
2) Doing a 1031 tax deferred exchange.
With regards to doing an tax deferred exchange, I have spent some time searching in solid markets (Seattle, Austin, and Reno) for both commercial Triple Net (NNN) opportunities and multi-units that are all delivering at least a 5% CAP rate return.
I did a presentation on increasing your rental revenue at the East Bay Rental Housing Association in last year. Click Here: Maximizing the Return on your Investment for the highlights.
Please reach out if you are interested in getting more information on the DST option or 1031 exchange.
My most recent transaction, a triplex, went into contract at full price, very short closing and no issues. If priced right and marketed fully, sellers are getting very strong offers.
Current Market For Building Sales
For example, if you want to sell your apartment at this time, I can help you with an evaluation and guidance.
I have spoken to two of the top lenders for East Bay multi-units and they are working on, and closing transactions at this time. I can forward their contact info if you want to speak with them.
Right now, If buyers have a good down payment they can get a loan and I can navigate you through the process.
It is always important to get guidance and advice from experienced multi-unit brokers who will market your property extensively to all potential buyers and brokers.
Posting a new building on all websites and sending out emails blasts gives the property visibility to literally tens of thousands of potential qualified buyers.
Looking forward to reopening and Summer 2021!