San Francisco - Good for invest in Apartment?

[sigurman]

I friend of mine wants to invest in an apartment in San Francisco and rent it.
Are the prices OK for investing now? The rentals seem to be high, which is good..

Anyone knows a good real estate website for this area? Google just replied with crap sites...

[potter]

SF is a big city, you'd have to narrow it down quite a bit for anyone to comment.

[sigurman]

In the "the mission" neighborhood... it seems to ne a good place to invest

[CourtneyR]

Originally Posted by potter

SF is a big city, you'd have to narrow it down quite a bit for anyone to comment.

SF is far from a big city. it is only 7x7 miles.

[Theo]

Have him/her look up issues arising with grandfathered rental rates

[clickhappy]

Yes, you will never lose money, long term, in san francisco. I live in silicon valley and want to move to SF but can't afford it.

Since its surrounded by water there is nowhere for people to go, so its just going to get more expensive and more expensive.
If I had money I'd *Definitely* buy a rental property in san francisco, if he intends to keep it long term.

remember: you will never lose money buying in san francisco.

[AsianDivaGirlsWebDude]

Originally Posted by AVN Theo

Have him/her look up issues arising with grandfathered rental rates

This.

The laws in San Francisco lean more towards renters than most other US cities (not to mention that it is just a matter of when, not if, the next big earthquake hits).

1906:


1989:




ADG

[sigurman]

Anyon knows any other city where 1% of the total investment can be returned in a mensal rent?
example - 300.000USD goes for 3.000USD month/rental (1%) - In San Francisco this is possible.

[xNetworx]

Originally Posted by sigurman

Anyon knows any other city where 1% of the total investment can be returned in a mensal rent?
example - 300.000USD goes for 3.000USD month/rental (1%) - In San Francisco this is possible.

300,000 USD is the fixed cost but you have to factor in taxes, fees, etc

I think anybody charging rent of 3k will have spent more than 300k on the unit and has heavy taxes and fees

[slapass]

Originally Posted by CamBoss

300,000 USD is the fixed cost but you have to factor in taxes, fees, etc

I think anybody charging rent of 3k will have spent more than 300k on the unit and has heavy taxes and fees

What utilities are paid can change the number quite a bit but 45-55% are lost to expenses on most rental properties.

1% gross rent is pretty good in a good neighborhood. It goes from 1/3% to about 2%. I get 2% on mine but then we hear gunshots now and then.

[arock10]

San Francisco has beyond terrible cap rates don't even bother. Plus high taxes, high insurance, and many more tenant protections then a red state

[thumbuilderic]

Check the Diamond Heights neighborhood. Breathtaking views of the city, several decent units for sale, and there are a lot of mid-level execs who can afford the rent if you're looking to lease out.