Buying a small Multi-Family with one unit already occuppied!

[Jay Maranan]

Hey BP,

I'm interested in buying a 3ba/3ba SFH with a permitted in-law unit in the basement. The property is in San Francisco and the top floor is occupied. The price for the house is fairly low ($800k) considering the house is in SF. The area is ok and is getting better. Not sure how to approach this being that there is already a tenant occupying the top floor paying low rent ($1500) for the area.

Any advice on how to approach this?

Thanks!

[Amit M.]

@Jay Maranan only $1500 in rent for a 3/3? That’s why the home is cheap! (No tenant and home is easily $100k+ more.)

Beware, that it’s legally considered a 2 unit bldg, and in SF the renter has full rent control. You could possibly do an owner move in eviction, but there are restrictions and it’ll cost you some $$ for relocation and legal fees. Unless you’re okay with taking the inlaw, I’d definitely talk to a lawyer we’ll versed with SF’s nutty rent control restrictions. Whatever you do, don’t go at it alone, as you could get sued for big $$$. 

Where is the house btw; Bayview, Excelsior?