A drop, a loss, and a few flips in Inner Sunset

by Anon8Mizer [with pictures and links added by theFrontSteps]:

Hi Alex — I like Inner Sunset because it’s one of the few neighborhoods in SF that haven’t sold out. So here are some observations:

innersunsetmedley.jpg

The drop:

1416 18th ave (condo) in a duplex – Originally asking $699K a month ago, now back on market at $649K — a 7.2% drop. At approx 936 sq ft, kitchen & bathroom still needing remodel/update, I don’t think we have seen the last of the reductions… About the only thing going for it is the side by side parking…

The loss:

1362 8th ave (condo) in a duplex — Purchased Nov 9, 2006 for $840K, now listed at $849K. It needs new cabinets in the kitchen. A loss when you count commissions…[It's not over yet, but it is in contract.]

A few flips:

1275-1277 14th Ave (duplex). Originally offered with both units tenant occupied at $998k, the original owner then got rid of the tenants and sold it in March ’07 for $1,170k (17% increase when it’s sold with both units vacant and no eviction penalty). The new owner fixed it up, and now lists at $1,499k. Saw it Sunday. At 2300 sqft, the rooms are rather small. Top unit has the smaller of the 2 bedrooms connected to a bathroom to make it a master suite, which is weird. I didn’t see any shower, either. Just the bathtubs — the new owner will have to put in a shower. Kind of baffling. What were they thinking? I would be surprised if it sold over asking…

1327-1329 17th ave (duplex). This one is on an extra wide lot and the rooms are huge. A developer bought it a few months back at $1,515k, completely remodeled it, and now is listed at $2,320,000 and in contract after one showing. I liked the quality of the remodel work there. The master bathrooms are huge, but single sink only — no double sinks. Again, what were they thinking??? What a pity.

1324 11th ave (TIC in duplex). Originally the whole building was purchased in March ’04 for $1,115k by two TIC partners. Now 3 and half years later the bottom unit is listed for $795k alone after remodel… If you split the building 46/54, that’s an increase of $282k, or 53% in 3.5 years if sold at that price…[Now in contract.]

The Moral:

Moral of the story seems to be — In this day and age when busy professionals are only looking at ‘spanking new, move in ready’ places, profit is still here if you are willing to put some elbow grease into a building…

One thought on “A drop, a loss, and a few flips in Inner Sunset”

  1. I think higher interest rates than two years ago are part of the story. If you have the downpayment, it’s easier in this market I think to put the whole price on your main mortgage than to buy and then take out a second mortgage at a higher rate to do the renovations yourself.

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