Quote from @Becca Hintergardt:
Hi Adriana,
I have lived in San Francisco many years and owned a duplex there for 20 years.
I invest in syndications in Texas but the returns have never been even close to what San Francisco has provided me- despite all the hype.
San Francisco is a Rip Van Winkle Market. You fall asleep for 10 years and you make a million bucks.
I would suggest you house hack a duplex. Have it be a fixer so you can add value. Condo convert this so you will separate the property into 2 APN's thereby, somewhat, making it exempt from rent control if done strategically.
Refinance when rates go down and hold this forever.
Buy in an area of the city where people are upwardly mobile so they will leave in a couple years as they have high paid tech jobs.
Purchase only one bedrooms as people grow out of them fairly quickly. They leave, you raise rents and on it goes.
My experience has been, as have other investor friends I know in San Francisco, is that the asset will double in value in 12-15 years.
Hope this helps. Feel free to DM me if you need more info on strategies.
Great insight into the San Francisco market. I tell my buyers if you buy and hold in San Francisco for long enough it likely will be beneficial. Similar to what Becca mentioned, if you can hold the home for long enough it will appreciate. SF's market is still very nuanced and strong due to the low inventory and demand here, homes still going above ask with multiple offers. Many investors buy these older homes, renovate them, and them covert to TIC's or condo conversion. Condo conversions usually sell at a higher price point compared to TIC's.
In regard to what you mentioned, yes rent often times is going to be cheaper than your PITI + HOA in the bay area.
