For over a year I’ve kept my eye on a 4-unit building in the Mission District of San Francisco. It is located on a small street between two vibrant corridors of the area, Valencia St and Guerrero St. The present owner has always used a property management company, the rents for the one-bedroom apartments are near market-rate and the building is well maintained.

Several days ago the price dropped $175,000 to $875,000. This is a great buy! For one thing, one-bedroom units are great rentals for an investor because there is turnover in tenants, which in San Francisco with its rent control laws means that the property can produce an adequate return for someone to be able to buy and maintain the property properly. It is also located in an area of town in which people are looking for places to rent.

If an individual or partners put 30% down the monthly payment is $4,776. The building is producing $5,600 a month in income. The GRM for the property is 13, most smaller buildings in this area of town sell at GRMs below 14.

This will make a great initial investment for a real estate investor, or real estate investment partnership. Please call me if you would like more information.

Posted By: Bill Wygant