The North Oakland rental real estate market has been hot for some time. Because it is a core Bay area neighborhood next to the pricey neighborhoods of Rockridge and Temescal, the Paradise Park area of North Oakland is prime for rentals. Because it is just outside the boundary of Temescal, purchase prices are lower. This presents an ideal combination for the savvy real estate investor: low purchase price, high rents, and price appreciation.

For investors seeking immediate cash flow plus long-term return, an area such as North Oakland thus presents an excellent opportunity.  The last piece of the puzzle is immediate upside potential from purchase rent levels.  Because the parts of North Oakland that are appreciating rapidly are being discovered both by owners and renters at this time, much of the real estate available there has not been fully improved.  There are many classic 1920s era homes and small multi-units in need of cosmetic and/or structural rehabilitation.

The cosmetic rehabs are a key opportunity.  While a significant return is also possible from performance of a major structural rehabilitation on a building, this is a capital-intensive undertaking made more so because it is quite difficult to obtain a loan on a property with such major structural needs as roofing, foundation and other major functional systems.  However, if a building only needs some paint and cleanup of its interior, while it may look really bad inside and out it actually might not need much work to make it both rentable and salable.

As investors and brokers, we at Sage Property Solutions have kept an eye on North Oakland, particularly the Paradise Park neighborhood, for the past nine years.  Kent Mitchell has performed two major projects on one of the larger properties in the area, resulting in an enormous return on investment.  Kent and Sage Property Solutions are keeping a close watch on properties now coming onto the market in this area.  You may view these on the Sage Property Solutions web site, here: http://www.sagepropertysolutions.com/opportunities.asp.

Please feel free to contact Kent with further questions about investing in this key Bay area sub-market.

Kent Mitchell, Principal Broker, Sage Property Solutions:

kent@sagepropertysolutions.com, 510-548-2554.

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