Home Buying in San Francisco>Question Details

jdh1810, Home Buyer in Huntington Beach, CA

If you are a real estate agent/broker, which area of san francisco would you buy in for appreciation as your #1 and income as your #2 priority?

Asked by jdh1810, Huntington Beach, CA Tue May 21, 2013

Budget of 1000000 to 2.25 million. Which is a good area for a good CAP Rate ?

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My fellow agents have covered a lot so to make it simple and based on 34 years a San Francisco Realtor I say: Noe Valley, Golden Gate Heights, Inner Richmond District, Glen Park, Twin Peaks and Inner Sunset.
Please contact me for the "WHY'S" for each of the above named areas.
Thank you for asking a very important question.
Bob Evans
C/21 Realty Alliance
0 votes Thank Flag Link Tue May 21, 2013
I'd want to know your time horizon to answer the appreciation part of your question. Our market is actively appreciating right now, so if you had a one year horizon I'd recommend some areas over others because they haven't quite participated in the run up, and so they're cheaper and are likely going to get priced-out buyers going there next. However, if you had a 5 to 10 year horizon I'd recommend yet another area, and with something along the lines of a 30 year horizon I'd recommend yet another area still.

As for cap rate, Robert is right that you can find better cap rates elsewhere. But San Francisco's vacancy rate is so low, and rentals in such demand, that you're unlikely to have the down time you may experience elsewhere. I also believe there are ways to maximize your cap rate - for instance knowing who to cater to, and when. For example. right now there are America's Cup rentals going for top dollar. Also so much of our rental stock is rather drab, so if you offered a luxury rental you could name your price.

That said, we've got rent control laws to deal with, an active tenant's union, and most of the cards in the deck stacked against landlords here, so lots to consider.

Best,
Rob Regan
http://www.RobRegan.com
0 votes Thank Flag Link Tue May 21, 2013
This depends on a number of factors but here are some suggestions :

Appreciation-Condos-South Beach, SoMa, Yerba Buena, Mission Bay
Income-Multi unit buildings Mission Dolores, Noe Valley, Lower Pac Heights

If you'd like a personalized recommendation it would require additional information.
Web Reference: http://www.LizeteSantos.com
0 votes Thank Flag Link Tue May 21, 2013
Nowhere in San Francisco are you going to get great income. SF is not a "income" type of market. If you just look at cash-on-cash return (based on income) or cap rate, SF is not going to offer good returns on your investment. Down the road you may get a good return based on capital gains if it appreciates. But the prices are too high in SF to get a good return solely based on the income the property generates.
0 votes Thank Flag Link Tue May 21, 2013
These types of answers and insight are reserved for my clients.

Oggi Kashi - 415.690.3792 direct
Broker Associate, Paragon Real Estate Group CA DRE 01844627
All data from sources deemed reliable but subject to errors and omissions, and not warranted.
Web Reference: http://www.oggikashi.com/
0 votes Thank Flag Link Tue May 21, 2013
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