Hi, the question really will come down to the numbers. In San Francisco, we have rent control, so if a building is occupied by tenants who have been there for 20 years, there may not be much return on investment. Of course, the rent rolls will have direct impact on the value of the building. An ugly building in a mediocre area with high rents could conceivably have more value than a beautiful building in a better neighborhood with low rents.
I could write ten paragraphs on all of the variables that need to be considered when deciding whether it is really worth it, but the bottom line is that it needs to be decided on a case by case basis.
If the numbers work, income property is a great place to park your money as it is a tangible asset. A lot of wealth is built by people who own income properties.
Hope this helps. If you'd like to discuss further, please feel free to contact me directly.
Lisa Fuller, Realtor
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