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 – 1160 Elmer Street – Belmont [click here for more]
For my first pick this week, I have one of the best investments I’ve seen in a while at 1160 Elmer Street in Belmont. This is a 12-unit building consisting of all studios, and for this area, I do like that unit mix, because right across the highway, you have Oracle and Electronic Arts, so you have a lot of young tech professionals. Plus, with your proximity to Belmont Train Station, which services Silicon Valley and San Francisco, you do attract a lot of that same demographic. Now these units will rent for just under $1800, $1795 but this is a value-add opportunity, so in order to achieve that market rent, you will need to invest about $20,000 per unit. Even still, with 50% down, and about a quarter of a million-dollar investment, you’re looking about 5.3% cash-on-cash return.
Paul’s Pick #2 – 641 Caribbean Way – San Mateo [click here for more]
For my second pick this week, I have 641 Caribbean Way in San Mateo. This is another add-value opportunity. I like the property’s overall size, 3,000 -square foot lot, 2,500 -square foot home, you got a lot of room to make this your own. But why this is a Paul’s Pick is because it’s just entered its third week on the market. So I think this is just a classic case of a property overlisted. I think if they listed about below the 2-million mark, with a jump to about $2-2, I’d personally like it for about $2-million to 1 range, and with a $250,000 remodel, you got about $2.5 million home.