Profitable Investment Potential with SB-9 in San Francisco

[Felicia Nitu]

Hello investors and developers!

If you're considering property in San Francisco, SB-9 could significantly enhance your investment strategy. This law allows you to split single-family lots into two or add a duplex, maximizing development potential on land you already own. Imagine turning a property into two 800-square-foot units with minimal red tape. The approval process skips public hearings, though lot splits can take up to 1.5 years for final sign-off. Be mindful of setback rules and a 20-foot height cap to maintain neighbor-friendly designs. With the right approach, SB-9 offers a streamlined way to boost property value and rental income.

Now let's talk numbers because that's what matters. In Noe Valley, building a 4,000-square-foot, three-story duplex with a 1,000-square-foot ADU could cost around $2.17 million, including permits and construction. With market values hovering near $7.5 million, that’s a 245% ROI. Sure, construction will take about a year, and permits might stretch up to 15 months, but the return makes it well worth the wait.

Thinking bigger? Consider a lot split. Build two 4,000-square-foot duplexes on separate parcels. Costs rise to about $3.51 million, but market values in Noe Valley could reach $12 million, a 247% ROI. Even in Monterey Heights, where prices are a bit lower, the market value could hit $8.8 million, with a 151% ROI.

Real estate agents, this is your moment to stand out. Position yourself as the go-to expert by showcasing properties primed for SB-9 development. In high-demand areas like Noe Valley, the potential for strong returns speaks volumes to buyers and investors.

If you're curious about how SB-9 can work in other parts of California, definitely check out It's Time to Invest in California, now! The zoning changes will make California a hot real estate market. With zoning changes making California’s real estate market even more attractive, now’s a great time to dive in. I’ve done a lot of research on these projects, so feel free to ask any questions here. I’m happy to help and share what I’ve learned!