7401 -7411 Hillside St

Oakland, CA 94605

$549,000B

3 bd · 2.0 ba · 1,622 sqft · Built 1960 · MultiFamily · Active · 115 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,959/mo
• Mortgage (P&I): −$2,879
• Tax + insurance: −$1,048
• HOA: −$0
• Vac / Maint / Mgmt: −$2,301
• Net cashflow: $4,731/mo
• Annual: $56,767/yr
• Cap rate: 16.63%
• Cash-on-cash: 36.93%
• DSCR: 2.64
• 1% rule: 2.00%
• Cash to close: $153,720

Investor read

• This is a 6 × 2-bed/1.0-bath units multifamily listed at $549k. Condition is rated fair.
• At list price, monthly cash flow is $5k ($57k/yr) — positive. Per door: $788/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($11k rent vs $549k).
• It's been on market 115 days — a 9% lower offer ($500k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $500k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#224 in CA) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• Oakland Unified (urban): math 27% / reading 33% proficiency, ranked #1,007 of 1,400 in CA (top 72%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Melrose Leadership Academy (656 students, 47% FRL); Frick United Academy of Language Middle (334 students, 98% FRL); Castlemont High (680 students, 98% FRL).
• Market conditions: Rents flat; 257 active listings in the ZIP; 25 comparable units currently listed for rent nearby; rentals lingering (median 64d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 84% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 1,742 units permitted in Alameda County in 2024 (856 in 5+ unit buildings).
• Alameda County population projected at +34% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 10y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (-3.0% appreciation + 0.7% rent growth), your $154k cash investment doubles in ~4 years — after that, you're playing with house money.
• Cap rate 16.6% vs local median 2.5% in Oakland — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Questions for listing agent

• It's been on market 115 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?

Repairs flagged (vision-AI assessment)

• Moderate: Exterior siding — Weathered and discolored
• Moderate: Interior paint — Worn and needs touch-up