San Francisco TIC Convesrion

[Toney Lindsey]

I'm looking at purchasing a property that has the plans and permits ready to go for a renovation. This could be a rental, but I really think that the real value is in converting it into a TIC. Does anyone have converting or investing experience with TICs in San Francisco?

[Alex Kim]

Hi Toney, 

For 2-4 units, it's pretty straight forward. Contact a RE attorney who specializes in drafting TIC agreements. It takes a few weeks and $3k. That's really all you need before putting them on the market. If 4+ units, the process is longer and costs more as you have to go through CA DRE. As you already know, the sum of parts is great than the whole in this case. Keep in mind, you'd be able to pay off the existing loan when closing on the first unit in most cases. Let me know if you have any other questions.