Two unit "owner occupied" buildings are exempt from the normal San Francisco "Condo Lottery" process to complete condo conversion. Among other items, this exemption requires that each "owner occupant" maintain at least a 25% interest in the title (ownership) of property for a period of one year. This will likley allow you to convert each unit in your building into an individual condo in a little over a year.
Your ownership interest is determined by how you took title to the property and is unrelated to your mortgage. With most two unit building in San Fancisco this "division of interest" is split 50%-50% (or something very close to this like 45%-55%).
If for example, you bought your individual TIC unit (in a two unit building) with your brother and your brother does not also occupy the unit as his primary San Francisco residence, then you, as "owner occupant", would then hold a 25% interest in the property (one half of a 50% interest being 25%) - however under this example you would still qualify as a "owner occupant" under the SF condo conversion requirements.
Good luck and feel free to contact me (firstname.lastname@example.org) with additional questions and/or sources of information regarding TIC condo conversion.... more
I don't think there has been a better time in the San Francisco/Penninsula area to be a buyer. Trust me, that will change. If you want to build equity, now is the time to buy. Rent isn't that cheap at this time in S.F. anyway.
No, I'm not a realtor, just someone who invests in real estate that wishes he had more capital to invest at this time. Good luck!... more