2610 College Ave

Berkeley, CA 94704

$2,099,000F

9 bd · 5.0 ba · 3,435 sqft · Built 1903 · MultiFamily · Active · 31 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,532/mo
• Mortgage (P&I): −$11,007
• Tax + insurance: −$5,066
• HOA: −$0
• Vac / Maint / Mgmt: −$1,162
• Net cashflow: $-11,703/mo
• Annual: $-140,436/yr
• Cap rate: -0.40%
• Cash-on-cash: -23.89%
• DSCR: -0.06
• 1% rule: 0.26%
• Cash to close: $587,720

Investor read

• This is a 9-bed/5.0-bath multifamily listed at $2.10M.
• At list price, monthly cash flow is $-12k ($-140k/yr) — negative.
• To cash-flow at today's rent, offer at most $632k (69.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $553k (73.6% below list).
• It's been on market 31 days — a 3% lower offer ($2.04M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $553k (73.6% below list) — sets the bar for 1% rule.
• In year one you build about $19k of equity ($15k loan paydown + $4k appreciation (0.2% local appreciation)).
• Location reads 77/100 on livability (#74 in CA, #2,860 nationally) — a middle-class / working-renter tenant base. Strengths: schools A+, amenities A+, commute A+; Watch: crime F, cost of living F.
• Berkeley Unified (urban): math 61% / reading 67% proficiency, ranked #175 of 1,400 in CA (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: built in 1903 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.0%/yr); 32 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.
• 8 sale attempts since 16y 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.
• Current owner paid $1.75M; 20% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 6, paydown + projected appreciation supports a ~$126k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate -0.4% vs local median 2.0% in Berkeley — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $5,532/mo this rent would consume 132% of the median local household income ($50k/yr) (locally 3047% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 31 days. Have you received any prior offers? Is the seller open to a 74% concession, seller financing, or rate buy-down credit?
• Built in 1903 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.