All Forum Posts by: Raimondo F.

Minh,

exactly, I'm all in for visual stability!

BTW, when you did the stress test were you more concerned with negative cash flow or out of wack LTVs? I was speaking with a Wells Fargo commercial banker at one of the meetup and he told me that, to cover them from the interest rate increase risk, they now borrow using the Debt Yield Ratio of ~8% (http://www.c-loans.com/knowledge-base/debt-yield-ratio). Practically is a cash on cash return on the debt of 8%. It's funny that you see a lot of investment properties selling with a 3-4% cap in these days in the Bay Area. Someone will probably get burned. Your conservative approach is definitely smarter!

Thanks,

Raimondo

Hey,

a very interesting historical analysis and model of rents in San Francisco (with data source on GitHub).

For numerical guys such as @Brian Burke, @J. Martin, @Minh Le etc etc

Some excerpts:

"Overall [rents], they went up 6.6% every year. Today's outrageous prices are exactly in line with the 6.6% trend that began 60 years ago."

"After adjusting for the Consumer Price Index, real rents have only gone up 2.5% per year and have only quadrupled in effective cost in 60 years"

"CONCLUSIONS" - In the long run, San Francisco's CPI-adjusted average income is growing by 1.72% per year, and the number of employed people is growing by 0.326% per year, which together (if you believe the first model) will raise CPI-adjusted housing costs by 3.8% per year. Therefore, if price stability is the goal, the city and its citizens should try to increase the housing supply by an average of 1.5% per year (which is about 3.75 times the general rate since 1975, and with the current inventory would mean 5700 units per year). If visual stability is the goal instead, prices will probably continue to rise uncontrollably."

https://experimental-geography.blogspot.com/2016/0...

Hi @Account Closed, if @Chris Mason is not in the city, I'll be and be very happy to meet and talk about the  San Francisco market. I do believe in location, location, location ;-)!

@Amit M. fresh off the press. Thanks for sharing!

Hi,

I own a 2 building 4-plex in San Francisco. I did an Ellis Act and the two units in the back building are empty. I'm considering selling the two units as TIC and I have some questions.

Does anyone know if I can use the proceedings to do a 1031 exchange into another property?

I'm looking at a property that costs less than what I might get from the sales of the back building, can the 1031 still be done? If yes, how is the difference treated as far as taxes are concerned?

Thanks!

@Ariel Goldenberg you can try 

Paul F. Utrecht // Utrecht & Lenvin LLP - he does presentations at the Small Property Owners monthly meetings and I personally like him.

I worked with Justin Goodman at http://www.zfplaw.com/, they are very good but boy, the invoices have been killing me ;-).

@Arlen Chou I would say that you perfectly described the Rent Control "drug" that tenants are happily taking. But, politicians are smart foxes, and they have a portfolio of solutions to keep the Rent-Control-Ellis-Acted tenant as a valued customer (i.e. voter): one of them is the Ellis Act Housing Preference Program (http://sfmohcd.org/ellis-act-housing-preference-program). The issue here is that rent-controlled tenants become so brain-numb that often times don't even take advantage of it...well, probably because in the meantime life has passed in front of them....but their rent was a very good deal ;-) !!

Hi Stan,

I'm a member of SPOSFI (smallprop.org) and I always enjoy Paul Utrecht's speeches. 

http://ullawfirm.com/paul-f-utrecht/

I've been working with Zacks and Freedman (http://zulpc.com/). They know their stuff very well but they are not cheap! What I planned to be a $5-$10k thing turned out to be $23-$25k. In case you can ask about Justin Goodman.

Steve,

a contractor working with a permit in San Francisco needs to have a San Francisco business license to pull the permit...just FYI

Rob,

I like your periphrasis "...they have a hard time asking them to leave". San Francisco is ruled by tenants and the policies that politicians enforce always tend to cross the freedom of individual property owners and encourage un-heard transfer of wealth from them to tenants. Look at the bottom to what Supervisors do with public money....

You cannot start buy-out conversation with the tenants unless you file a

PreBuyout Negotiations Disclosure Form Required by Ordinance Section 37.9E

http://sfrb.org/379e-tenant-buyout-agreements

You need to know that doing so will effect your possibility of condo converting the property and other nasty stuff...attorney may agree that the best is to consider Ellis Act the building and sold units as Tenant in Common...but each case is unique....

I'd to encourage you to spend some money with a good attorney who can maximize your property value...

Are you facing a possible eviction, for any reason? The City can help.


TENANTS’ RIGHTS FORUM

HOSTED BY DISTRICT 5 SUPERVISOR & BOARD PRESIDENT

LONDON BREED


Location: The Independent - 628 Divisadero Street

Date: Thursday, December 3rd, 2015

Time: 7 - 8:30 pm

Representatives have been invited from:


- San Francisco Rent Board


- The Mayor’s Office of Housing & Community Development


- The Housing Rights Committee


To offer advice and information to tenants, from legal rights to eviction
resources!

There will be a formal presentation from each representative, followed by
Q&A

and an opportunity to talk separately with each agency.

Questions?

Contact Iris Wong, Legislative Aide for Board of Supervisors President
Breed at [email protected]