Home Buying in 94107>Question Details

Sharon, Home Buyer in San Francisco, CA

a condo in SOMA, san francisco as a rental property?

Asked by Sharon, San Francisco, CA Mon Feb 7, 2011

hi, I own a condo in SOMA, san francisco and try to buy rental property. Is it a good idea to buy another condominium again in ivestment wise this year? Thanks

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9
Paul Hwang’s answer
There are a lot of great buys out there right now in the forms of short sales and foreclosures. Additionally if you come down to SoMa South Beach the new high rises tend to rent out at higher rents because they can be rented out furnished as corporate rentals. I've recently rented out a 2 BR at One Rincon Hill for $10,000 / month!

Of coarse if you really are focused on cash flow you should consider commercial properties. I think SoMa South Beach has a good future in that respect.
Web Reference: http://www.paulhwang.com
0 votes Thank Flag Link Fri Feb 18, 2011
For the price of a condo in SOMA you could probably buy a multi-unit building elsewhere or more than one condo or home elsewhere - thus spreading your risk. So the only answer to your question is "it depends". Are you mostly interested in cash flow, or future appreciation, or parking money in a "safe" investment whether or not it "performs" well? Finally, some SOMA condos will be better investments than others depending on location, health of the building, and a number of other factors.

It's been 10 days since you asked this question. Have you made any decisions yet?
Web Reference: http://www.SFisHOME.com
0 votes Thank Flag Link Thu Feb 17, 2011
Hi Sharon,

I'd be careful with condos in SOMA. In the long term there is definitely upside, but you really have to dig into the financials of the HOA to see if there is the possibility that dues are going to go up in the near term. If you don't see significant property appreciation, then the HOA dues are really going to eat into your cash flow. Furthermore, since you already own a condo in SOMA, you might want to diversify your portfolio by investing in a different type of property or different area of the city.

Have you considered multi family properties? These type of properties can give you significantly better cash flow and see property appreciation as rents increase. Generally speaking, multi-families are considered one of the best inflation hedges. Feel free to check out my blog at http://peterbrunton.sfpru.com/page/312539/Blog-MarketNews/Blog

Regards,
Peter Brunton
Prudential CA Realty-Franciscan Properties
677 Portola Drive
San Francisco, CA 94127
415 728 5580
http://www.peterbrunton.sfpru.com
0 votes Thank Flag Link Mon Feb 7, 2011
Hi Sharon,
I hope you're well and enjoying our amazing SF weather.
Personally, I think it's a great time to buy a rental property in San Francisco property. After all prices and interest rates are still very low. The type of property you buy will depend on your lifestyle now and your longterm investment goals. Hiring a Realtor to guide you through the process is your smartest move. If you're interested in the South Beach neighborhood of the city, please feel free to read my market report.

Enjoy your evening,
Robyn
0 votes Thank Flag Link Mon Feb 7, 2011
Dear Sharon, "Wanting" to invest in a rental property in SF. is a good premise. Now the rest of the variables that are indigenous to you will be, whether you can Green or Red light this kind of investment. I would be remiss in advising you to "Buy" specifically in SOMA or not without having a consultation with you. I offer my services to you as well as the other agents that have replied. The one thing that I can advise you on, is DO consult with an experienced Realtor that is not "hired" by a new construction sales office. Respectfully,
Honey Brooks Realtor
SF Homes of Distinction
International Luxury Property Specialist
S.R.E.S ( Senior Real Estate Specialist)
W.C.R. (SF former President, Women's Council of Realtors)
DRE #01310883
P.C.B.
415-425-2008 mobile
"Your Personal Business is My Confidentiality"
honeybrooksrealtor@comcast.net
honeyb@SFHomesofDistinction.com
0 votes Thank Flag Link Mon Feb 7, 2011
Hey there Sharon-

The short answer is yes. With interest rates at historic lows, it makes sense to borrow long term at these low rates. The long answer would be that it all depends on your particular financial situation and what you're trying to accomplish both short and long term. Will you be staying in SF or is there a possibility that you may relocate? How do you feel about being a landlord? Are you familiar with SF rent control? Etc.

I would be more than happy to talk to you some more don't hesitate to call or email anytime.

Now get out and enjoy this weather! :)

Rich Bennett - 415-305-4911 cell

Zephyr Real Estate
2500 Market St.
San Francisco, CA 94114

DRE#01358540
0 votes Thank Flag Link Mon Feb 7, 2011
There are some condos with high rent and low expenses but you should think about your long term investment goals first.
0 votes Thank Flag Link Mon Feb 7, 2011
Hi Sharon,
Any decision to invest should be made after a global look at your finances, income, financial planning and career goals. I believe that every property is worth buying as long as it is at the right price and fills a need in your longterm financial plan.

No one should be able to answer this question without understanding your particular situation and the condo/HOA your are conidering purchasing.

Feel free to contact me at your earliest convenience should want to discuss further.

Sincerely,
Kevin Kropp
Vanguard Properties
Lic# 01413211
415 606-1415
Kevin@vanguardsf.com
0 votes Thank Flag Link Mon Feb 7, 2011
Sharon,

For me, "wise investment" would be defined either as a property that is cash-flow positive or has tremendous upside. For example, I bought a 3-level loft last year that we could probably rent for twice our mortgage payment, and/or separate the lower floor to keep as a place in the city to come and stay if I ever move. To me, this kind of investment is a no-brainer.

I would definitely stay away from the larger complexes/high rises barring some exceptional deal because the combination of higher HOA fees and higher resale difficulty.

I not only live here but have sold a number of places here as well. If you'd like to sit down sometime to figure out if buying makes sense our contact info is below.

Best Regards,

Lance King/Owner-Managing Broker
lance@fixedrateproperties.com
415.722.5549
DRE# 01384425
0 votes Thank Flag Link Mon Feb 7, 2011
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