Investment Overview

474 Vallejo Street is a 1926-built multifamily property situated in San Francisco, CA, offering a compelling investment opportunity. The asset consists of 5 units, featuring a unit mix of 80.0% one-bedroom layouts and 20.0% three-bedroom layouts. It sits on a 0.04-acre lot with a total gross building area of 4,158 square feet. Offered at a purchase price of $4,250,000, the asset presents an attractive entry point into the market. From a financial perspective, the property exhibits upside potential with current gross rents of $294,420 sitting below the market gross rents of $318,000. At the current purchase price, the asset operates at a 4.83% capitalization rate, generating a Net Operating Income (NOI) of $205,270.87. However, the true value of the investment lies in its proforma metrics. By capturing the gap between current rents and market levels, an investor can increase returns to a projected proforma NOI of $227,228.56, effectively boosting the capitalization rate to 5.35%. The building currently operates with a projected physical vacancy rate of 3%, reflecting a stable, income-generating asset. Located in San Francisco, the property benefits from its strategic location. The property operates with total current expenses of $83,916.53, which accounts for 29.02% of the Effective Gross Income. This profile, combined with the property 's value-add potential, strategic location, and an attractive unit mix of primarily one-bedroom apartments, positions 474 Vallejo St as a highly reliable, cash-flowing asset with immediate upside.