665 Eddy St

San Francisco, CA 94109

$6,950,000A

25 bd · 48.0 ba · 28,200 sqft · Built 1924 · MultiFamily · Active · 48 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $130,612/mo
• Mortgage (P&I): −$36,447
• Tax + insurance: −$21,348
• HOA: −$0
• Vac / Maint / Mgmt: −$27,429
• Net cashflow: $45,389/mo
• Annual: $544,670/yr
• Cap rate: 14.13%
• Cash-on-cash: 27.99%
• DSCR: 2.25
• 1% rule: 1.88%
• Cash to close: $1,946,000

Investor read

• This is a 45×1bd/1.0ba + 2×2bd/1.0ba + 1×?bd/1.0ba units multifamily listed at $6.95M. Condition is rated good.
• At list price, monthly cash flow is $45k ($545k/yr) — positive. Per door: $946/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($131k rent vs $6.95M).
• It's been on market 48 days — a 3% lower offer ($6.74M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $6.74M (3.0% below list) — sets the bar for market timing.
• In year one you build about $397k of equity ($48k loan paydown + $349k appreciation (5.0% local appreciation)).
• Location reads 76/100 on livability (#90 in CA, #3,143 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• San Francisco Unified (urban): math 50% / reading 56% proficiency, ranked #322 of 1,400 in CA (top 23%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Lilienthal (Claire) Elementary (669 students, 19% FRL); Giannini (A.P.) Middle (1,192 students, 34% FRL); Lowell High (2,632 students, 37% FRL) — zoned schools average 30% FRL vs 49% district-wide (19 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: property tax is 3.2% of price; built in 1924 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 381 active listings in the ZIP; 29 comparable units currently listed for rent nearby; rentals lingering (median 109d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 86% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 750 units permitted in San Francisco County in 2024 (688 in 5+ unit buildings).
• San Francisco County population projected at +39% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 15 sale attempts; this cycle's ask is 316529% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• At projected returns (5.0% appreciation + 3.0% rent growth), your $1.95M cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$637k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 14.1% vs local median 2.1% in San Francisco — 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.
• This rent per unit runs 31% of the median local income ($106k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 48 days. Have you received any prior offers? Is the seller open to a 3% 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?
• Built in 1924 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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?