Home Buying in San Francisco>Question Details

Nigel, Home Buyer in Cupertino, CA

San Francisco Investment Property(Serious Buyer)

Asked by Nigel, Cupertino, CA Tue Nov 27, 2012

I am interested in an investment property in the San Francisco area. I am an out of state investor. Looking for a property for around 700k in a high demand area. I am unsure of the property type and am open to foreclosures/bank owned(with minimal work)

My goal is to rent out the property in hopes of having the rental cover the mortgage. Ultimately I also hope to see capital appreciation on the property and prefer not to purchase du/quadplexes.

Any thoughts and advice ?

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6
Nigel:
You said the S.F. area which could be interpreted to be the S.F. Bay Area metropolis of @ 7M people. Strong demand is common in many cities, though the best deals are in the areas hit
hardest by foreclosures, and I doubt they are experiencing the highest demand, or getting the
highest rents. The choice locations have very low vacancy rates, very high rents like Manhattan,
and as noted, if it's in S.F., Berkeley, or Oakland, very strict Rent Control Boards require the
landlord be either well educated on the local laws, or hire a professional who is.

Everyone understands that real estate appreciation is most likely in high demand, high quality
areas. The formula for break even management, often requires a very large down payment to
reduce the monthly expenses. Don't forget those high property taxes. And if you buy a condo for
investment, I think you'll find it far less likely that you see the same sort of appreciation long term
that you would on a non condo property exclusive of the luxury class properties.

For S.F. $700K doesn't buy much in any good neighborhood. And 2-4 unit rental properties are
always in high demand - maybe you would benefit from further reseach?
0 votes Thank Flag Link Wed Nov 28, 2012
Hello Nigel,

I grew up in San Francisco and own a few investment properties myself, one of which is in San Francisco. Currently, I live in Santa Clara.

My number one goal in owning an investment property is that the rental cover the mortgage. This, however, depends greatly on how much of a down payment you have. The other goal I look for is a personal attachment to the property itself or area I am buying in. My duplex in Hawaii, as an example, is only minutes to the beach, downtown, Waikiki, etc. Basically, it is near everything, or as you put it, in a high demand area.

There are too many variables to put in this forum, but if you drop me an email we can talk real estate and see what properties are available out there that might peak your interest.
0 votes Thank Flag Link Tue Nov 27, 2012
Hi Nigel,
I'd be happy to help.
I know several properties that fit your criteria.
Please contact me to discuss.

Ellie Kravets
Realtor,GRI,TRC
Zephyr Real Estate
415.948.1601
0 votes Thank Flag Link Tue Nov 27, 2012
Yes, I always make sure my clients first understand the complicated San Francisco landlord-tenant rules and regulations (e.g., rent control, etc...). Since you are an out of state investor, you may also wish to hire a property management team to manage your investment. This will save you time and money in the long haul. There are investment properties that fit your criteria and that have an upside potential.

I was a real estate attorney and practiced in San Francisco, so my clients benefit from my legal experience as an attorney and expertise in negotiating, structuring, and closing real estate transactions. I am also a real estate investor and have managed over hundreds of rental units for investors.

Please contact me at your convenience:
Wayne J. Chi, Esq.
Broker-Associate
Zephyr Real Estate
http://www.sfchi.com
wayne@sfchi.com
415.689.9999 (direct)
DRE #01914999
0 votes Thank Flag Link Tue Nov 27, 2012
The first thing you need to do is understand the complicated and very pro-tenant regulations here. I have represented clients and bought many of these buildings myself and would be glad to get you up to speed and see if you still want to move forward with that. Contact info below:

Best Regards,

Lance King/Owner-Managing Broker
lance@fixedrateproperties.com
415.722.5549
DRE# 01384425
0 votes Thank Flag Link Tue Nov 27, 2012
I have some private sale options in the Van Ness/Civic Center district that fits your Criteria.

Jerry
415-282-8875
0 votes Thank Flag Link Tue Nov 27, 2012
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