New project: buying buildings
Posted in real estate on October 10th, 2006 by MarkBallewRight now I’m looking into how feasible and what risk factors are involved in buying and improving rental buildings in the city. What got me rolling in this direction is actually two things: when I was living in Reno, I considered more than once buying and renting out houses and apartments, including my former condo, and second I’ve found myself obsessing over San Francisco real estate. I read all the blogs, I browse the MLS, and I watch loan rates like a hawk. So why not take the first step, and see if I can make any money at it?
So far my research concludes that yes, I could make some money at this. There are many catches though, all of them San Francisco specific. There are crazy laws on tenant rights, which is useful to know as a renter myself. Things like OMI, Ellis Act, Rent Control, and the 14 eviction rules.
The starting price for a 4 unit apartment building? $750,000.
Gotta dollah to spare?
Some notes so far:
Here are a couple good examples:
1549 Jones $1.4m for 7 one bedrooms, built in 1913
376 Union $1.5m for 2 buildings with 5 units, looks pre-1920.
Beware of Rent Control tenants, of course. They give you a sheet of all rents paid so you can be sure you don’t end up with someone paying $350/mo for a $1500/mo market rate unit.
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