Investment Overview

Marcus & Millichap is pleased to present this amazing opportunity to own a stabilized, highly upgraded turn-key property in one of North County San Diego’s most desirable cities. The property was completely renovated in 2020 both inside and out. In addition, the Seller obtained permits and built a brand new 300 SF Studio ADU. Over $650,000 was spent on the renovations in 2020. The Property includes 7 units (Five 3BR/2Bath, One 2BR/2Bath & One Studio Unit). Upgrades to the Interiors include stainless steel appliances, new windows, quartz countertops, custom cabinets & paint, wood flooring, central heat & air conditioning & ceiling fans. The downstairs units include large private patios/yards. There are 15 off-street parking spaces including 6 covered spots. During the renovation in 2022, the Sellers went through the proper development proceedings to permit and build a 360 SF Accessory Dwelling Unit (ADU). This unit was improved with the same type of upgrades as all of the other units. This is a stand-alone unit that had tons of interest from tenants when it was advertised for rent. This unit was rented for $1,895/month, therefore, increasing the yearly income by almost $23,000. The existing loan of $1,895,877 is assumable to a qualified buyer. The rate of 3.3% is well below current financing rates allowing for an excellent cash-on-cash return of roughly 5.5% including Principal Reduction. The property has lower than average expenses secondary to all new highly efficient appliances. In addition, the Tenants are on a RUBS system where 90% of all the utility costs are paid for by the tenant. There is approximately a 10% upside in the current rents. The Property sits on a large 16,337 SF (.38 ACRE) Corner Lot. According to Walk Score, the property has a 71/100 score which is considered Very Walkable which explains the diverse tenant mix of families and young professionals. Families enjoy the convenience of being within walking distance of San Marcos Elementary School, as well as several nearby grocery and convenience stores. Young Professionals enjoy being a short walk to several major shopping centers, restaurants, and bars. The property may also be an excellent option for Students attending Cal State San Marcos wanting to live off campus. San Marcos is considered North County San Diego and the population of North County continues to grow at the fastest rate of all of San Diego County.