All Forum Posts by: Account Closed

2. What made you condo convert during this time which resulted in the Life Time Lease for the current tenants? I guess I was wondering why you didn't stay as TIC until tenants leave, and only then convert?

A friend of mine is having similar situations (long term tenants but no condo conversion just yet), so she's trying to gauge the situation.

Would love to hear your feedback and thanks in advance!

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San Francisco, California

I'm in SF and familiar with the condo conversion law including the lifetime lease to tenants. So sorry you are in this situation. And sorry to add a bit more headache, but you'd want to double check your lease agreement with her, to make sure it doesn't allow any sublease. My worry is that she'd move out one day, but would airbnb her place. Again, didn't mean to add more problem to the current situation...

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San Francisco, California

Originally posted by @Diane G.:

@joanna L. - if you did your homework, you will realize the the property took off on 10th, and on the night of, price changed from $1.9m to $2.4m.... you think that is enough time for a bank loan to fall thru?

No homework needed done, but if you follow real estate transactions in SF, it is quite normal for the seller to determine the offers submission date. And once the offers are in, based on the one they selected, sometimes raise the asking price in case the offer didn't go thru and need to pick the next one. This could take however long a loan normally takes to either fall or go thru.

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Originally posted by @Sam Josh:

@Account Closed Do you mind sharing which part of the city/what type of place were you renting your place at in November. I ask because I was in the market myself renting out a 2 bedroom condo in south beach in one of the full serviced buildings in that area, and unfortunately it was not as easy as you mention. I did find a tenant but it was no stampede or I saw no desperation.

Hi Sam,

Mine was an SFR in the Bayview district. My previous tenants gave their 30 days notice on September 30, but I was going away for vacation just around that time. I put up the Craigslist ad right away, but could only show the place on my return, I think on October 25th. I did one open house, got a few applicants, with the requirement that the lease starts on November 1st. Got a few applications, selected one couple and two other applicants were on the wait list including one that sent that pile of cash pic.

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Originally posted by @Diane G.:

@Sam Josh

If/when you are a landlord in SF, and you put a unit on the market for rent, you will know... You don't need any statistics, and you will just know... Lol

I did. Back in November, got it rented in one showing, tenants moved in a few days later. One applicant sent me a piles of cash and her DL on top of the stacks. Just to show how desperate people are in trying to get a rental in SF.

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Originally posted by @Amit M.:

That’s because they probably already received an offer for over 2 mil, which is why they changed it on the mls.

God you’re dense!

Exactly.

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Originally posted by @Diane G.:

@Amit M.

If you think something that can't sell at $1.9M would sell at $2.4M, you seriously deserve some eggs on YOUR face.. Lol

Normally that's because they already received offers at around $2.4M. And in case the deal falls thru (bank loans didn't go thru etc.), that would be their new asking price.

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how about this one: https://www.yahoo.com/news/bay-area-housing-prices-high-193416565.html

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Originally posted by @Michael Kovac:

Thanks for the mention @Account Closed

I am not speaking in reference to a rental in any capacity. Only in recapturing square footage for resale in this specific scenario.

Since the OP's MIL is planning to rent the house out, once she legalized the in-law into a separate unit and have (rent controlled) tenants in both units, the resale value will be greatly affected. At that point, the square footage is not going to be as relevant as occupied units.

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Originally posted by @Michael Kovac:

If you intend on keeping it as a single family then the answer to your question lies in simple math.

The zip which you provided leads me to believe that the house in question is in the Outer Sunset where in the past 180 days we have seen an average of $909.71/sqft. If you can recapture 550sqft that is an additional $500,340.50 in equity. If you can do the construction for $100k (it will be more), even at $200k its a no brainer.

I am trying to think of this very simply....

It is never just a "simple math" when it comes to San Francisco rentals.

1 Vote

All Forum Posts by: Account Closed

Account Closed has started 5 posts and replied 110 times.

Post: Re: What would you do with a lifetime leased unit?

Post: Re: What would you do with a lifetime leased unit?

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Post: How would the new buyer of $2m Sunnyvale house feel?

Post: How would the new buyer of $2m Sunnyvale house feel?

Post: How would the new buyer of $2m Sunnyvale house feel?

Post: How would the new buyer of $2m Sunnyvale house feel?

Post: Question about finish the basement

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