Airbnb in SF

[Haseeb Awan]

https://www.zillow.com/homedetails/1401-1407-Rhode-Is-San-Fr...

I wanted to diversify my income and thought of starting an Airbnb. Are there any reliable firms who can manage it. These looks too good to be true 

[Mike Grudzien]

Quote from @Michael Baum:

Hey @Haseeb Awan, FYI if you weren't aware:

In San Francisco, short-term rentals of less than 30 nights are legal only if the host lives in the unit as a permanent resident for at least 275 nights per year and registers with the city, with un-hosted rentals capped at 90 nights annually and a $925 registration fee.

So unless you are planning on living in one of the units, you are outta luck on that place.

I will say that at 1.1m price isn't bad. 4 units,1/1, about 600sqft each. Average 1/1 rent is $4250 in SF. It makes more since to keep it as a LTR.

You are looking at around 7k a month in mortgage. They say it is a 6% cap rate. Something isn't adding up on that. Maybe there are other costs that shoot it way up but I am not sure what they are.

Words of wisdom from Michael!