New Buyer 2.7MM in San Francisco!!

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Brian Garlington
Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
4y

$2.77 Million DUPLEX in San Francisco. Maybe I looked at the wrong link you attached but it does not look like it is for sale....also....cap rate is not what you need to be utilizing to determine potential profits on a residential small multifamily. Lastly.....if one of the two tenants in this duplex in The City decides not to pay rent you can go broke very faster than a "bitcoin millionaire" trying to keep afloat on this my man.

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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    4y

    A 6 cap in San Francisco would be decent, but what's your plan? Straight investment or you want to house hack 1 of the 3 units? Remember though that cap rate is not really the correct application for anything under 5 units. The appraised value is based on comps so have your agent run the rental comps for the units, as well as the sale comps for 3-family homes within 1/2 mile or 1 mile in the past six months to see how ripe the price is.

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  • Brian Garlington
    Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
    4y

    $2.77 Million DUPLEX in San Francisco. Maybe I looked at the wrong link you attached but it does not look like it is for sale....also....cap rate is not what you need to be utilizing to determine potential profits on a residential small multifamily. Lastly.....if one of the two tenants in this duplex in The City decides not to pay rent you can go broke very faster than a "bitcoin millionaire" trying to keep afloat on this my man.

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  • David S.
    Investor · Bay Area, CA · Member since 2014 · 165 posts · 45 votes
    4y

    This building is vacant. There are a lot of vacancies in San Francisco now, due to the exodus of tech workers to out of state. Things will improve but I would think lease up will take time especially at the suggested rental rates. I don't think many banks will lend at lend at 75% of purchase price and at the 3.5% rate advertised on a vacant income property. How do you plan to finance the purchase?

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