Welcome to Paul’s Picks, a weekly segment where Paul showcases some the best deals on the market here in the Peninsula. From single-family homes and condos to 2-4 units and large apartments complexes even vacant lots. Paul closely and constantly monitors a wide arrange of product types seeking out the market opportunity that you might not have thought about. If you would like to discuss a property in more detail or find out about other properties that may fit your needs better please give me a call at (650) 348-2020.
Paul’s Pick #1 – 726 Fillmore Street – San Francisco (Call for more details)
For my first pick this week, I have a very exciting investment opportunity for a 10-unit apartment building at 726 Fillmore Street in San Francisco. I absolutely love this location; just steps away from Alamo Square and walking distance between 3 vibrant neighborhoods in Hayes Valley, Nopa, and the Lower Haight. But what really excites me with this property is that out of the 10 units, 5 will be delivered vacant, allowing you to instantaneously achieve market-value rent. Currently listed for just under 3-million, this will jump at least 20-25%, but even with that bump you’re looking at between 3 1/4 and 3 1/2-percent cap rate which our excellent returns for that investment in San Francisco.
Paul’s Pick #2 – 528 Nevada Avenue – San Mateo [click here for more]
For my second pick this week, I have 528 Nevada Avenue in the Baywood neighborhood of San Mateo. This is easily one of my favorite neighborhoods in San Mateo, and if you know me by now, you know I love that Spanish-revival architecture and all the charm and character that come with it. What excites me with the home so much is that you can add-value not only by remodeling the existing structure, but at just under a quarter-acre lot, you have this space that would be added on the home, so if you want to add on a big family room, master suite, you have the ability to do so. But why this is a pick is because this home has just entered its second week on the market, and it’s clear to me that it is at least 20% overpriced. I think the value that they have on it now is what it would be worth when you’ve remodeled the home. So the key here is to be the first in line, it is a probate sale so you know they are motivated. So be that first buyer to write that offer and negotiate the price down. This won’t last I think beyond week 3 or 4.
Paul’s Pick #3 – 1123 Chula Vista Avenue – Burlingame(Call for more details)
For my final pick this week, I got another great value-add investment opportunity in a prime location at 1123 Chula Vista Avenue in Burlingame. This is an 8-unit apartment building consisting of all studios, and I like that demographic because it can appeal to the walking distance to Broadway, short commute to BART and 101, you can appeal to a lot of young tech professionals. Currently listed for 2.9, I do expect of a bump in value, but because it can be difficult to finance the opportunity, I don’t think it’s trade more than around 3-million. Even at that value though, you’re looking at about 4% market cap and a 3% cash-on-cash return.