1825 Highland Pl #1829

Berkeley, CA 94709

$550,000F

1 bd · 1.0 ba · 726 sqft · Built 1950 · Condo · Pending · 19 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,666/mo
• Mortgage (P&I): −$2,884
• Tax + insurance: −$427
• HOA: −$234
• Vac / Maint / Mgmt: −$560
• Net cashflow: $-1,439/mo
• Annual: $-17,266/yr
• Cap rate: 3.15%
• Cash-on-cash: -11.21%
• DSCR: 0.50
• 1% rule: 0.48%
• Cash to close: $154,000

Investor read

• This is a 1-bed/1.0-bath condo listed at $550k.
• At list price, monthly cash flow is $-1k ($-17k/yr) — negative.
• To cash-flow at today's rent, offer at most $296k (46.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $267k (51.5% below list).
• It's been on market 19 days — a 2% lower offer ($542k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $267k (51.5% below list) — sets the bar for 1% rule.
• In year one you build about $22k of equity ($4k loan paydown + $18k appreciation (3.4% local appreciation)).
• 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.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.3%/yr); 34 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 20d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• By year 2, paydown + projected appreciation supports a ~$36k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 3.2% 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.
• This rent runs 36% of the median local income ($89k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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?