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Updated over 8 years ago,
New member looking for pointers in San Francisco market
Hello!
I've been living in San Francisco for the last 6 years, and have recently decided to buying my first property in San Francisco so I joined BiggerPockets. Given that the market is extremely expensive and competitive, I would like to try to house hack to bring down my mortgage costs by either:
- Purchasing a single family home with the opportunity of renting out a portion of the house (i.e. renting out an in law)
- Purchasing a duplex and renting out the other unit
I've started the research process over the last few months and needed some help. I've come across this listing which seems underpriced even though it its been on the market for 2 months: https://www.redfin.com/CA/San-Francisco/30-Patton-...
I found that the listing is under conservatorship sale which after doing some research is a pretty convoluted and lengthy process which can deter some buyers. Does anyone have experience with conservatorship sale? Does this listing price look fair or is this one of those listings that will end going for significantly higher than listing at court? I'd love to get some help understanding if this process is feasible and if this listing price is "too good to be true", and any buyer's agent recommendations for conservatorship sales.
Outside of that listing, I'd love to get advice for those who have house hacked duplex or triplexes in the city. I've come across some interesting properties but the key issue I've found that is usually there are no vacant units and the units are paying rents that are rent controlled and severely below market (for example, tenant paiyng $1000 for a 2 bed!).
- Since I plan on living on the property and most properties don't vacant units, how difficult is the owner move in eviction process (or a buyout)? Should I only look for duplexes which have a vacant unit to not deal with the hassle?
- What % of rent can I reasonably expect to net after expenses for the unit i rent out? I've been budgeting a 50% margin (so a profit of half of rent after maintenance, insurance, etc) but that seems low.
- Has anyone house hacked a unit using short term rentals (for example Airbnb)? Is that feasible given San Francisco new laws regarding Airbnb? Is this a method to avoid rent control?
Looking forward to hearing about anyone's experience in house hacking in this crazy market!