San Francisco Conversion to Multi-Family: What Works?

[Ethan Cooke]

Hello SF BP'ers - 

What are the best value-add options for a single-family home in San Francisco zoned as an R3? (triplex).  I own a property like this which is currently renting at market rate and would LOVE some guidance and ideas. 

@Account Closed 

I am considering the following OPTIONS. Which of these are doable and likely to yield a high return over 5-7 years?

A. Convert to a 3-unit building and rent them out (with rent control). Great short-term return, likely less long-term return.

B. Convert to a 3-unit Tenants in Common (TIC) and sell the building to 3 buyers. What kind of time and money would this require?

C. Convert to a 2-unit condo building. Can I do this as a sole owner? Or do two buyers have to partner on a duplex purchase in San Francisco to then convert it to condos?

D. Add an in-law unit for additional income from short-term rentals (e.g. AirBnB). 

E. Keep it as a single family home and continue to rent it out with no rent control

Thanks in advance for your ideas!