260 Brooklyn Basin Way #437

Oakland, CA 94606

$262,900F

1 bd · 1.0 ba · 499 sqft · Built 2023 · Condo · Active · 58 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,722/mo
• Mortgage (P&I): −$1,379
• Tax + insurance: −$438
• HOA: −$535
• Vac / Maint / Mgmt: −$362
• Net cashflow: $-991/mo
• Annual: $-11,894/yr
• Cap rate: 1.77%
• Cash-on-cash: -16.16%
• DSCR: 0.28
• 1% rule: 0.66%
• Cash to close: $73,612

Investor read

• This is a 1-bed/1.0-bath condo listed at $263k. Condition is rated good.
• At list price, monthly cash flow is $-991 ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $119k (54.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $172k (34.5% below list).
• It's been on market 58 days — a 3% lower offer ($255k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $119k (54.6% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k 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: Franklin Elementary (496 students, 94% FRL); Westlake Middle (314 students, 87% FRL); Oakland High (1,531 students, 88% FRL) — zoned schools average 89% FRL vs 68% district-wide (21 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: HOA is 31% of rent.
• Market conditions: Rents rising (+1.9%/yr); 224 active listings in the ZIP; 26 comparable units currently listed for rent nearby; rentals leasing fast (median 11d on market — plan ~1-2 weeks tenant-placement turnaround); 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.
• Cap rate 1.8% vs local median 2.5% in Oakland — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 58 days. Have you received any prior offers? Is the seller open to a 55% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?
• 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.