**Property Viewing, Friday February 21st from 12:00-2:00 PM** This multifamily property is a true money maker. Grossing nearly $188,000 annually, It also boasts a 6.03% cap rate and a 10.37 GRM, numbers which are extremely favorable to the Buyer and rare for San Jose properties. The property is a true Single Room Occupancy (SRO) property with 14 single rooms which share 4 full bathrooms each with a shower, and one two-bedroom unit with a full private bathroom inside the unit. All units share one large kitchen. The rooms are rented between $225 - $250 on a weekly basis with the two-bedroom unit renting for $350/week. The property also pulls in approximately $275/month in laundry income. The property currently grosses $15,675 per month. Operating expenses for the property include taxes, insurance, utilities, cleaning, maintenance/repairs, permits and licenses, laundry equipment rental and landscaping.
The property was constructed in 1903 with wood framing and siding. The structure is 3,258 sq. ft. on a 9,856 sq. ft. lot. The foundation is brick and mortar, the plumbing is copper, galvanized and PVC, and the roof is composition shingle. The property was rewired in 1994 and the furnace was replaced approximately seven years ago. Both completed with permits. While the property is in good condition the opportunity exists for an investor to add value through renovation, and possibly charge higher rents. The property is currently zoned R-1-8 with the usage designated as a large Guesthouse (11 or more units). All the units are legal and permitted. The property is not currently rented to any students, although it is only four blocks from San Jose State University. This property is subject to San Jose’s Apartment Rental Ordinance for tenants longer than a 30 day stay. There is also an extremely large basement which is underutilized and an onsite laundry room with a leased washer and dryer. The property is located in Downtown San Jose, just four blocks from the University. There is a shortage of student housing in San Jose and housing for students historically has had a very low vacancy rate.
