New Listing: 4 Plex on Adeline, Berkeley – June 2021 Update

New Listing Details
This new 4 plex listing is on Adeline, 1/2 block to Ashby BART and 1 block to Berkeley Bowl. It has 4 off street parking spots, with a nice small backyard. There is a 2 bedroom (currently vacant), a 1 bedroom, a junior 1 bedroom, and a studio.
All tenants have paid full rent during Covid. Priced 11.8 X Gross Rent Multiplier and delivering a 5.8 CAP rate.
For any further information on this new listing, please feel free to call or email me.
Rental Market
The headline in the business section for today’s SF Chronicle is about large tech companies increasing their office leasing square footage. The message is: They are going to be bringing their employees back to work. What that looks like and how many days per week is still not clear.
This should bode well for San Francisco rents and also then positively impact East Bay rents. As rents have been slowing increasing in San Francisco, these are signs that we are getting “Back to Normal”.
With the June 15th “reopening” just a few days away, there is a sense of life getting back to normal. What this “normal’ looks like is still to be determined. There is a momentum back towards commuting, at least a few days a week, to go back to work.
Outlook for East Bay rents
Owners near UC Berkeley are seeing a lot of interest as students are anticipating campus re-opening. Areas near BART and core areas in Oakland and Berkeley and seeing an uptick in vacancy inquires.
It appears that the difficulty of finding new tenants is dependent on which neighborhood and the amenities of the unit.
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.
Two ways:
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!