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.
Neighborhood: Eureka Valley
The Deets: Two 2BR/1BA upper flats, and two 1BR/1BA lower flats.
List Price: $1,898,000
The Scoop: 443-447 Sanchez is a grand Victorian with great period detail throughout all units, and updated kitchens/baths. Current rents are reasonable, and the vacant 2BR/1BA is being remodeled. Excellent location near the Castro, Mission Dolores, and Duboce Triangle, as well as multiple rail lines.
The Deets: One 2BR/1BA; two 2BR/2BAs; one 3BR/1.5BA
List Price: $2,695,000
The Scoop: This handsome, Marina-style building at 1071-1077 Treat has three vacant units. These are all full-floor flats, and three have been extensively renovated. Significant seismic upgrades have been done, and there is capacity for eight-car parking. Steps from the 24th street retail corridor and a multitude of restaurants and shops. BART is about seven blocks away.