"We think we want to buy an investment condo in San Francisco; how do we start?"
So began a recent email and phone exchange between past clients and me.
- We talked budget (they are looking under $800,000, financing about 60-70% of the purchase)
- They want new construction, or almost new
- Their target tenant is a hi-tech worker (of which there are plenty in San Francisco)
- We talked neighborhoods (which ones appeal to their target tenant?)
While in most parts of the country their target price would give them a multitude of choices, here in San Francisco choices are limited. However, there are a few places that I believe meet their criteria well, and we have appointments set up to look at a couple next Saturday.
I have written before about opportunities along the Van Ness corridor, and this is the area we'll be concentrating on first.
The two projects we'll visit are both new builds in the Middle Polk Street neighborhood, an area popular with their target tenant, with good public transportation (including a cable car line heading over the top of Nob Hill and down to the financial district.) One can live here happily without the expense of owning a car, and many do just that.
One building is still under construction, with scheduled hard hat tours available and a sales office showing finishes of floors, cabinets, etc. All appliances are included here except a washer/dryer; each unit is plumbed for them.
Roughly 35% of the units have already been pre-sold. The other building is completed, with just a couple of units remaining for sale.
If you have been considering making a purchase, either for your own use, for a family member, or as a rental investment, I urge you to begin the process now while opportunities remain.
If you will be obtaining financing, it's all the more important to act now before interest rates take the jump upward.