Airbnb in SF

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Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
4mo
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!
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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    4mo

    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.

    1Reply
    • Mike GrudzienPro Member
      Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
      4mo
      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!
      1Reply
    • John UnderwoodPro Member
      Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
      4mo
      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.


       Mike only took a few minutes to google this I imagine.

      1Reply
    • Haseeb Awan
      OP
      Investor · Ottawa, Ontario · Member since 2016 · 225 posts · 46 votes
      4mo
      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.

      That's what I thought too but there are many airbnbs in SF. How are they operating ? Secondly, I do have access to pool of tenants who want it for 3-6 months at a time. That could be legal right ?

      0Reply
    • Michael BaumPro Member
      Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
      4mo
      Quote from @Haseeb Awan:
      That's what I thought too but there are many airbnbs in SF. How are they operating ? Secondly, I do have access to pool of tenants who want it for 3-6 months at a time. That could be legal right ?

      The same way people do all sorts of illegal things! They do it until they get caught and fined. Don't be the guy who breaks the law. Otherwise, they might be living on site in someway. Like in a 

      Now, according to the ordinance, anything over 30 days in the city (and state for that matter) is a long term rental. So 3-6 month leases should be A-OK. Just make sure you have rock solid leases for everyone. Get an attorney and make sure it is right on the money. You are investing in CA so a lot of things can go sideways with tenants and there is nothing you can do about it.
      0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
    4mo

    Yes, Google is your friend.

    I can only speak myself but I would be very wary of investing in SF and CA in general for a multitude of reasons.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    1Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    4mo
    Quote from @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 


     You would be better off buying cheaper more luxurious airbnbs in the Midwest. Your dollar will go much further, landlord friendly state, and the market is booming because of tech/job/population growth. 

    [email protected]614-802-5698
    ReafCo | Ahmed Group 534 Reviews
    WebsiteView Page
    0Reply
    • Haseeb Awan
      OP
      Investor · Ottawa, Ontario · Member since 2016 · 225 posts · 46 votes
      4mo
      Quote from @Alfath Ahmed:
      Quote from @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 


       You would be better off buying cheaper more luxurious airbnbs in the Midwest. Your dollar will go much further, landlord friendly state, and the market is booming because of tech/job/population growth. 

      How has been the returns there ?

      0Reply
    • Haseeb Awan
      OP
      Investor · Ottawa, Ontario · Member since 2016 · 225 posts · 46 votes
      4mo
      Quote from @Alfath Ahmed:
      Quote from @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 


       You would be better off buying cheaper more luxurious airbnbs in the Midwest. Your dollar will go much further, landlord friendly state, and the market is booming because of tech/job/population growth. 

      Duplicate post

      0Reply
    • Alfath AhmedBusiness Member
      Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
      4mo
      Quote from @Haseeb Awan:
      Quote from @Alfath Ahmed:
      Quote from @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 


       You would be better off buying cheaper more luxurious airbnbs in the Midwest. Your dollar will go much further, landlord friendly state, and the market is booming because of tech/job/population growth. 

      How has been the returns there ?


       Occupancy is very strong because of Ohio state university football season, children's hospital/osu hospital travel nurse program, and the incoming travel  for pleasure and business.

      [email protected]614-802-5698
      ReafCo | Ahmed Group 534 Reviews
      WebsiteView Page
      0Reply
  • David inyeneobong Ekpenyong
    Member since 2026 · 4 posts · 0 votes
    4mo

    It’s a great thing to do. I’d do same if I had the money and resources.

    0Reply
  • MJ Javadi
    Investor · San Francisco, CA · Member since 2026 · 13 posts · 1 vote
    3mo

    I think your instinct is right to be cautious. Short-term rentals can look very attractive on paper, but the management side is usually what determines whether the numbers actually work.

    A good management company can definitely make things easier, but I would still underwrite the deal assuming realistic expenses: management fees, cleaning, maintenance, furnishing, utilities, insurance, taxes, and potential seasonality. A lot of the projections you see online don't always include the full picture.

    I’m in California and have been looking at different investment strategies as well. One thing I've noticed is that the market and local regulations matter a lot with Airbnb—what works in one city can be completely different in another.

    Are you looking at a specific market already, or are you still exploring where an Airbnb would make sense?

    0Reply
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