1718 High St

Oakland, CA 94601

$688,000B+

6 bd · 5.0 ba · 5,078 sqft · Built 1890 · MultiFamily · Active · 311 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $16,931/mo
• Mortgage (P&I): −$3,608
• Tax + insurance: −$1,940
• HOA: −$0
• Vac / Maint / Mgmt: −$3,556
• Net cashflow: $7,828/mo
• Annual: $93,931/yr
• Cap rate: 19.95%
• Cash-on-cash: 48.76%
• DSCR: 3.17
• 1% rule: 2.46%
• Cash to close: $192,640

Investor read

• This is a 10 × 1-bed/?-bath units multifamily listed at $688k. Condition is rated fair.
• At list price, monthly cash flow is $8k ($94k/yr) — positive. Per door: $783/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($17k rent vs $688k).
• It's been on market 311 days — a 12% lower offer ($605k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $605k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $21k 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: Horace Mann Elementary (192 students, 100% FRL); United For Success Academy Middle (370 students, 96% FRL); Fremont High (1,146 students, 97% FRL) — zoned schools average 97% FRL vs 68% district-wide (29 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 2.9% of price; built in 1890 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.9%/yr); 146 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals lingering (median 54d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 60% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 4 sale attempts since 9y 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 + 3.9% rent growth), your $193k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 19.9% 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 311 days. Have you received any prior offers? Is the seller open to a 12% 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 1890 — 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — The roof appears to be in poor condition, with visible wear and tear.
• Major: exterior siding — The exterior siding and paint show significant wear and tear, with peeling paint and discoloration.
• Major: landscaping — The landscaping appears overgrown and unkempt, with some dead plants and debris.
• Major: fencing — The fencing is in poor condition, with some sections appearing rusted and damaged.