I would only like to tell you that you have to be prepared to compete with a lot of first time home buyers and other buyers who are buying primary residences.
This year has been the year of low and very low inventory for the San Francisco real estate market, plus there aren't many REO and not even short sales. Looking for distressed properties will not necessary produce results for investors.
Consider the price of a 2bd/2 bath to be 700k +. Then add the mortgage payment -if applies, an average HOA of $500/month, property taxes, insurance. Having an investor mind set, I am sure you will analyze the rents in the area and calculate your CAP rate.
Pacific Union International
The price range and the rental rate will vary by neighborhood.
Why is it important to you that the house be close to entertainment? All you'll do is restrict the tenant pool to people that want to be close to entertainment. Many others are fine traveling to a venue and would want peace and quiet when they are not in the mood.
And by the way just about everything is easy to rent in San Francisco and it's neighboring areas. As a property manager I can attest to that.
Depending on your budget, good neighborhoods to consider that are closer to entertainment and downtown would be the Mission district, SOMA, and North Beach. Also, I would definitely consider looking in the Richmond and Sunset districts as well. The benefits of buying in the Sunset is that you are looking a lower prices and it is close to San Francisco State University and UCSF which would be easy to rent out. There are definitely a lot to consider, please contact me if you need help regarding comparisons of neighborhoods, pricing, rents, safety and desirability. With that said, the rental marketing is very competitive right now so finding a renter will not be difficult in most neighborhoods.
Good luck on finding your investment property!
You sound like someone who has been thinking about this move for some time and know what it will cost to make it happen. I started buying rental property in 2002 and it's a great feeling.
What constitutes a good neighborhood to you? Is proximity to entertainment important to you because you may use this for a residence if/when not renting it? Are you looking for new construction, traditional, or conversion property? What is your limit for HOA dues?
There are 2 bedrooms 2 bath properties on and off-market throughout San Francisco that would be well suited for you. Places that I would target would be the Mission District, North Beach and Telegraph Hill, The Marina, The Dogpatch, and SOMA. Renting in San Francisco is competitive and with dwindling inventory you shouldn't have difficulty finding a renter almost anywhere you choose.
If you would like to talk over some opportunities you can reach me at 415-562-6999 or via email at email@example.com.
I wish you the best with your investment.
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.
There are options in a number of neighborhoods depending on price point-SoMa, South Beach, Fidi, Downtown may be possibilities. Rental rates are execeedingly high at the moment and you'll be able to benefit from the increased rates. With the advent of the Americas Cup rental units will be at a premium as well in these areas.
Depending on your time horizon as well as your investment objectives you'll be able to ascertain which areas will be a suitable fit.