543 1/2 Arroyo Ave.

Welcome to Arroyo House — a fully remodeled, turn-key investment property on a massive lot in Santa Barbara’s highly sought-after Mesa community. Currently operating as premium student housing, Arroyo House serves students from SBCC, UCSB, and Westmont College. This exceptional property features 10 fully furnished rooms with 26 total beds, configured as (3) doubles, (5) triples, (1) quad, and (1) single. Each unit has been tastefully upgraded with high-end furniture and modern finishes, offering a comfortable and stylish living environment. Outdoor amenities include new landscaping, a volleyball court, and ample private parking — enhancing both tenant experience and long-term value. Additionally, the solar system is fully paid off, and a 400-amp commercial-grade electrical panel has been added. Whether you're looking for a cash-flowing asset or a unique student housing opportunity, Arroyo House checks all the boxes.

Room Configurations (3) doubles; (5) triples; (1) quad; (1) single #Beds / Price Per Bed 26 / $165,192 Cap Rate 6.77% ('25/'26 Sch. Yr.) 7.06% ('26/'27 Sch. Yr.) 7.36% ('27/'28 Sch. Yr.) GRM 9.76 ('25/'26 Sch. Yr.) 9.39 ('26/'27 Sch. Yr.) 9.03 ('27/'28 Sch. Yr.) 

Laundry Free

Plumbing

Installed new high-capacity ejection sewage pump (2024) Replaced both water heaters (2025) Installed new sink faucets and valves (2024/2025) New garbage disposals and faucets in all three kitchens

Electrical

Commercial upgrade from 200-amp to permitted 400-amp panel Nine-month project involving consultants and Edison administration

Solar

Purchased system offsetting effectively all on-grid electrical requirements

Landscaping/Drainage

Regraded majority of the property to optimize drainage and water flow Removed mature trees encroaching on roofline to protect structure, reduce fire hazard, and improve sunlight exposure

Kitchens

Main Kitchen: New countertops, fixtures, and hardware Garage Kitchen: Fully updated with appliances, cabinets, countertops, lighting, and fixtures Kitchenette at Beachside room: New cabinets, sink, faucet, cooktop, and refrigerator

Shed

Rebuilt termite-damaged framing and repainted storage shed

Deck

Repaired and replaced rotted deck boards

HVAC

Replaced all dryer ducts with hard pipe for easier maintenance and fire safety