2207 Bonar St

Berkeley, CA 94702

$2,100,000C+

17 bd · 8.0 ba · 7,100 sqft · Built 1961 · MultiFamily · Active · 17 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $23,941/mo
• Mortgage (P&I): −$11,013
• Tax + insurance: −$2,730
• HOA: −$0
• Vac / Maint / Mgmt: −$5,028
• Net cashflow: $5,171/mo
• Annual: $62,053/yr
• Cap rate: 9.25%
• Cash-on-cash: 10.55%
• DSCR: 1.47
• 1% rule: 1.14%
• Cash to close: $588,000

Investor read

• This is a 8 × 2-bed/1.5-bath units multifamily listed at $2.10M.
• At list price, monthly cash flow is $5k ($62k/yr) — positive. Per door: $646/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($24k rent vs $2.10M).
• It's been on market 17 days — a 2% lower offer ($2.07M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.07M (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $15k of loan paydown is wiped out by about $63k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#74 in CA, #2,860 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment 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.
• Zoned schools: Malcolm X Elementary (459 students, 29% FRL); Martin Luther King Middle (871 students, 20% FRL); Berkeley High (math 74% / reading 98%, grade A, #25 of 1,170 statewide, top 2%, 3,204 students, 23% FRL).
• Zoned-school proficiency averages 86% at this address vs 64% district-wide (+22 pts) — the actual schools serving this property are materially stronger than the Berkeley Unified average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents rising (+3.6%/yr); 43 active listings in the ZIP; 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.
• 11 sale attempts since 2y 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 $330k; list at $2.10M implies a 535% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.6% rent growth), your $588k cash investment doubles in ~10 years — after that, you're playing with house money.
• Cap rate 9.2% vs local median 2.0% in Berkeley — 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.
• At $23,941/mo this rent would consume 288% of the median local household income ($100k/yr) (locally 1183% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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 1961 — 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?
• 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.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.