One of the most strategic and desirable investments you can make in San Francisco is to purchase a three- to four-unit property that has one or more units vacant, a garage, and a good neighborhood location. Let’s face it, rents in the city are high, and if your rents reflect today’s market, you’ll be ahead of the game in the long run.
It’s extremely important to be well versed in San Francisco’s rent laws before you consider such a purchase. I’ve been a successful owner-landlord for the past 16 years, and there’s definitely a list of do’s and don’ts to which you’ll want to adhere. You also will want to have a large down payment or you’ll have no cash flow. Here are three properties worth a look, particularly if you’re in this for a long-term hold:
The Deets: Two vacant Victorian two-unit buildings on one lot with a capacity for eight-car parking. There are two 1BR/1BA units, and two 2BR/1BA flats.
List Price: $3.7M
The Scoop: NoPa’s become all the rage in the past couple years, so finding tenants for three of these nice units shouldn’t be a problem. The property was built in 1880 and has all the period details people love. You can move in to one of the larger units in the front building for your primary residence, and rent out the rest. 1031-1037 Divisadero is on a double lot and has updated kitchens/baths, and hardwood floors. The building came on the market at the end of August for $3.9M, so the current list price reflects a reduction. [Read more…]