Comprehensive investment analysis powered by real data
| Option | Monthly Cost | Equity Building | Tax Benefits | 5-Year Outcome |
|---|---|---|---|---|
| House Hack This | $3,050/mo | $519k in 5 years | ✅ Mortgage interest | Own $519k equity |
| Rent 2BR in SD | $2,500-3,200/mo | $0 | ❌ None | $0 equity, $180k paid |
| Year | Property Value | Loan Balance | Total Equity |
|---|---|---|---|
| 1 | $1,114,040 | $841,900 | $272,140 |
| 3 | $1,204,613 | $815,000 | $389,613 |
| 5 | $1,303,000 | $784,000 | $519,000 |
| 10 | $1,585,000 | $695,000 | $890,000 |
Build 2 ADUs for $350k total, rent them at $2,000/month each = $4,000/month additional income. Your housing becomes FREE + you profit $950/month!
Front 3BR: $3,400/mo | Rear 2BR: $2,500/mo = $5,900 total income vs $5,398 mortgage = $500/month profit
Total income: $7,400/mo | Your housing: FREE + $2,350/month profit while living there!
Property worth $1.3M-$1.6M | Capital gains exclusion ($250k single/$500k married) | Pocket $300-500k in tax-free gains | Use proceeds for next investment
Break-even housing, not free
If 3BR tenant leaves, you pay full $5,398/mo
You're living next to your tenant
Tax/insurance will increase over time
Low maintenance risk, turnkey
Navy/military demand keeps rents strong
$217k buffer from Day 1
Massive upside optionality (2 units)
Has $72k saved for down payment
Can afford market-rate rent
Planning to stay 3-5+ years
Wants to build equity through real estate
Open to eventually developing ADUs
This is break-even Year 1, not profitable
Must afford $5,398/mo if tenant leaves
Don't want to live next to tenant
Planning to relocate in 1-2 years
Live at market rent while building generational wealth!
• Cash Required: $71,920 (5% down)
• Housing Cost: $3,050/month (≈ market for 2BR)
• Immediate Equity: $216,950 (Day 1)
• 5-Year Equity: $519,000
• ADU Upside: Massive (can add $4k/month income)
The Math: Save $140,880 over 5 years vs buying single-family + build $519k equity + tax deductions + ADU optionality. Not through cash flow, but through equity capture, appreciation, and future development.
This is how you build wealth in expensive coastal markets.
View Property on Zillow →LTR: Live for $3,851/mo (8% below market). STR: Live for $2,906/mo (30% below market!) + save $15-30k/year vs renting while building $394k equity in 5 years!
| STR Performance | ADR | Occupancy | Gross Monthly | Net Income | Your Housing Cost |
|---|---|---|---|---|---|
| Conservative | $300/night | 65% | $5,850 | $4,095 | $3,956/mo |
| Realistic | $350/night | 70% | $7,350 | $5,145 | $2,906/mo |
| Aggressive | $400/night | 75% | $9,000 | $6,300 | $1,751/mo |
Your Total Investment:
Your Equity Position (Year 5):
Net Wealth Created:
| Property | Price | LTR Cost | STR Cost | Location | Verdict |
|---|---|---|---|---|---|
| Delta St | $899k | $3,050/mo | N/A | SD 92113 | Good |
| Arizona St | $1,149k | $3,851/mo | $2,906/mo | Univ Heights | Better with STR! |
Arizona St is BETTER if you do STR because:
Capital and cushion available
Live in top-tier SD location
Can manage OR budget 20% for mgmt
Plans 5+ years to maximize equity
Afford $8k/month for 2-3 months if needed
$3,851/mo = 8% below market
University Heights = top-tier SD
Fully renovated, start STR immediately
Each guest gets own bathroom (STR gold)
$800k equity in 10 years
Works great with LTR, becomes exceptional with STR!
• Cash Required: $92,000
• Housing Cost (LTR): $3,851/month (8% below market)
• Housing Cost (STR realistic): $2,906/month (30% below market!)
• Market Rent Equivalent: $4,200/month
• 5-Year Equity: $394,000
The Math: LTR saves $754/month vs market. STR saves $1,294/month ($15,528/year) vs renting. Build $394k equity in 5 years. Total 5-year benefit: $206k value created.
Key Insight: You're not just breaking even - you're living 30-50% below market cost while building $400-800k in equity over 5-10 years. This is how you house hack in expensive markets!
View Property on Zillow →| Unit Type | Count | Status | Current Rent |
|---|---|---|---|
| 3BR/1BA | 2 | Occupied | $2,800-3,200/mo |
| 2BR/1BA | 3 | Some vacant | $2,200-2,600/mo |
| 1BR/1BA | 1 | Status TBD | $1,600-1,900/mo |
| Total | 6 | 4 occupied, 2 vacant | $14,700/mo current |
Easy commute throughout Bay Area
Fruitvale or Coliseum stations
Spillover from high SF/Oakland rents
Working-class neighborhood, stable
Higher crime area vs premium Oakland
Not Rockridge, Montclair, Piedmont Ave
Working-class neighborhood requires attention
2 vacant units (33% upside from fill)
10.3% CoC even with vacancies
Very efficient operations
Fully renovated, no deferred maintenance
Tenants pay PG&E (huge savings!)
Additional income source
Major competitive advantage in Oakland
Mostly 2-3BR units (stable tenants)
Must verify reason isn't property-specific
Substantial entry requirement
East Oakland = more Section-8, higher turnover risk
Tech layoffs, post-pandemic adjustment
| Year | Cash Flow | Property Value | Equity |
|---|---|---|---|
| 1 | $41,964 | $1,518,400 | $465,000 |
| 5 | $59,000 | $1,776,000 | $748,374 |
| 10 | $83,000 | $2,162,000 | $1,230,000 |
Numbers work even WITH vacancies, get MUCH better when stabilized!
• Cash Required: $408,800
• Current Cash Flow: $3,497/month (10.3% CoC with vacancies)
• Stabilized Cash Flow: $5,500-6,000/month (16-17% CoC)
• Cap Rate: 8.7% (excellent for Bay Area)
• 5-Year Total Return: $1,043,000 (255% ROI)
Key Decision Factors: If vacancies are due to market timing (not property defects), and you can fill them at projected rents, this is a HOME RUN. Low expense ratio (24%), strong debt coverage (1.49x), fully renovated, separate utilities = excellent fundamentals.
Better than Vegas 16-unit (4.1% CoC) and comparable to Vallejo (11.7% CoC) but with more upside potential!
View Property on LoopNet →Between Oakland/SF/San Jose
Major draw for families
Direct I-580 and I-880
30-40 min SF, 25-35 min SV
Peninsula access nearby
Stable, established community
More affordable than San Ramon, Pleasanton
Remote flexibility attracting workers
Supply-constrained = rent support
Established neighborhoods resist development
| Year | Annual CF | CoC on Original Capital | Property Value | Equity |
|---|---|---|---|---|
| 1 | $119,126 | 6.9% | $6,396,000 | $1,832,658 |
| 3 | $155,000 | 9.0% | $6,913,000 | $2,400,000 |
| 5 | $183,000 | 10.6% | $7,481,000 | $3,152,398 |
| 10 | $274,000 | 15.9% | $9,104,000 | $5,168,993 |
| 20 | $504,000 | 29.3% | $13,551,000 | $10,870,000 |
23.7% expense ratio = excellent for 1965 building
All 2BR townhomes = most in-demand Bay Area format
$9,927/mo Year 1 → $22,828/mo Year 10
1.33x = can absorb 25% income drop
Limited multifamily development = rent support
For $1.72M invested, many want 8-10%+
$1.722M ties up significant liquidity
60-year-old building needs ongoing capex
May limit rent ceiling vs larger 2BR
Not premier Bay Area (appreciation may lag)
Has $1.7M+ liquid capital
Want predictable cash flow, not max yield
Comfortable with fundamentals
Patience to let returns compound
Value location over maximum CoC
This starts at 6.9%
This is turnkey, not repositioning play
Can't lock up $1.7M in one asset
Returns don't peak until Year 10+
Textbook "set it and forget it" wealth builder - not exciting, but rock-solid!
• Cash Required: $1,722,000
• Year 1 Cash Flow: $9,927/month (6.9% CoC)
• Year 10 Cash Flow: $22,828/month (15.9% CoC)
• Cap Rate: 7.8%
• 10-Year Total Return: $7.1M (312% ROI)
Investment Thesis: Quality, stabilized asset in strong secondary Bay Area location. 6.9% Year 1 CoC won't excite, but fundamentals are rock-solid: efficient operations (23.7%), premium 2BR townhomes, excellent Castro Valley schools, predictable cash flow growth, limited supply competition.
Best Use: Core portfolio holding, wealth preservation (not creation), long-term dynasty hold (pass to heirs generating $500k/year by Year 20), quality over yield play.
Perfect for high net worth investor parking $1.7M in safe, cash-flowing Bay Area asset with strong fundamentals and can accept 7% returns that grow to 16%+ over time. This is how generational wealth is built - slowly, steadily, predictably.
View Property on LoopNet →