I own a single-family home in San Francisco. I typically rent to 3 roommates and hold a room for myself. With the possible repeal of costa-hawkins, I am considering selling and downsizing to a 2-bedroom condo or TIC. I would sell my current place, buy the smaller one, and rent one bedroom to one lodger (a lodger is not a tenant and the associated relationship is not likely to be regulated by the rent board).
I would like to get a rough idea of the TIC/condo price differential. Is there a rule of thumb for the increase in value associated with a condo conversion? If so, this is probably the same as my "TIC discount".
@Account Closed Everyone's talking about the potential repeal of Costa Hawkins for the past few weeks. It will be quite interesting to see how it turns out. If it gets repealed, it will put an additional squeeze on inventory levels...
Interestingly enough, I'm hosting a workshop on dispelling myths about Condos & TICs on August 15th haha. Generally speaking, there's usually a 5-7% discount for a TIC vs. a Condo. Since inventory is still quite limited, I've seen a lot of entry-level TICs close in less than a week, with others sitting on the market for over a month. TICs over $1.5m usually sit for 2-3 months - could potentially get more of a discount on those. If you have any questions about how to finance TICs, I can connect you with a TIC specialist lender.