An elegant owner occupited unit with 5 rentals in Pac Hts is a very desirable property. Much of the value will depend on size, location, floor plan, PERIOD DETAILS, parking and views.
As to the conversion form units back to a SFD...
Is that a CASH REGISTER I hear ringing in the back ground? Renovations and conversions are complicated, time consuming, and VERY expensive. Sellers need to consider fees and permit costs, architectural plans, and dealing with the planning and building department.
This can be OK if you are very experienced with construction and have lots of extra TIME and MONEY. But if time and money are an issue, this renovation will be both a headache and a nose bleed that doesn't quit for about 1-2 years. OUCH!!
As to the value of rental units...rents seldom justify sale price in SF. GRM and Cap Rates do NOT usually work on small buildings. Most buyers will consider the value of the owners unit and upside potential on RENTS and/or VALUE ADDED on the possible conversion to TIC units. If any units are VACANT, this greatly increases the value of the property. My suggestion is:
1. Consult an experienced SF architect as to potential costs and fees involved on conversion or renovations. (I have a local SF architect who will give you a FREE consultation for 30 minutes).
2. Consult several experienced REALTORS to give you value estimates and ideas for marketing the units AS IS with suggestions on enhancing the value without costly renovations.