So how do you get one? Buy, sell, or refer a real estate transaction to me, and the shirt is free. Otherwise, we’ll work something out. Contact me to get yours today.
Dear 134 16th Ave,
We have had our eyes on you for quite some time and are heart broken to see you must go. We must tell you, it’s not your frontside that originally grabbed our attention.
Yes, your frontside is nice and you’re very attractive upon first glance. We’re also aware that you have a great inside (although we’ve heard you underwent serious counseling to get where you are), but it’s really your backside we admire….ooh, la, la!
Or maybe it’s the fact that you have recently found a suitor that makes us that much more attracted to you. You know, the whole want what you can’t have thing. Regardless, you’re one hot property and we wish you well.
Your secret admirers
-134 16th Ave, asking $2,695,000 and recently in contract. [MLS]
Well, all, few and far between are homes we can look at and positively say: That’d be a good investment. Yet here is one, that frankly, given the size and location, has to be just that. The downside– yes, sorry, these days there simply has to be one- is that this could be a lonnnnng term investment indeed. It could also bring out the evil in a person that he or she didn’t even know existed; but the latter, I suspect, is often the result of becoming a landlord in this city.
Welcome to 1847 Stockton, 2/1 TIC on Telegraph Hill, listed at just $250K. At issue is the tenant currently occupying the property. This tenant is “protected,” and “is not moving.” Now, if we know our tenant/landlord laws in SF as well as we should, we know protected tenants are either:
- Ill, too ill to move, or that moving may make them worse
- Disabled: Again, the burden and expense of moving has been deemed unacceptable to these persons
- Elderly: Same logic as above, given the large number of very fixed incomes allotted to those no longer working
- Long term resident: 10 years or more in the residency= you cannot get rid of this person legally.
Andy Sirkin, oft credited as the pre-eminent font of knowledge on all things eviction and TIC related (which incidentally, this property is both) puts it this way:
Protected Tenants: Certain tenants are “protected” and cannot be evicted for owner-occupancy except in very limited circumstances. Protected tenants are those 60 or over or disabled who have occupied for 10 years, and those catastrophically ill who have occupied for 5 years. Also remember that no tenant with an unexpired lease can be evicted, and that tenants who occupy a unit during conversion to a condominium are entitled to remain for one year after conversion, or for life if they are over 62 or disabled.
We have no way of telling from this listing alone what group this tenant belongs too, but it could easily be any of the above, including the long term residency, since the current rent being collected on a 2 unit in North Beach several years beyond what this tenant pays: $795 a month. (Um, no wonder the tenant is “not moving!”)
So how then is this a good investment? Well, I already said: It’s a 2 bedroom TIC in a highly desirable area, also in a building that looks well cared for. We don’t know how the unit itself looks (no pics: bad sign), but we can find out by attending the open house on 11/22 or 12/6 from 9am to 10am. In fact, if anyone goes, email some details to The Frontsteps as I’d love to do a follow-up. And hey: if we find the tenant to be ill or elderly, maybe we can project that lifespan he or she has left and plan our investment accordingly. Or, perhaps if you know a good hit man? Ha, ha. Calm down, people! Of course, I’m kidding; but you can see how the tenancy laws might bring out the worst in landlords, or landlords to be.
In any case, this property does offer some potential if you can wait it out. The rent collected now won’t cover the mortgage, so it’s a good bet for someone who can pay cash for the whole shebang. And, kismet: The listing says “all cash sale.” That means then in 333 months (27 years) or so, you’d have your principal investment back and could commence profiting. Or, you get lucky, and the tenant would …disappear first.
We noticed it [3373 22nd Street] hadn’t had a Sunday open in a while, but rather than a pending or sold sign outside – we noticed the sign was just gone yesterday. It isn’t on the public mls as in contract – it just isn’t there. You know the scoop?
We are dying to know the final sales price. It was our perfect house in our perfect location – but a very unperfect price. So it wasn’t just the price – it was the price plus the people who were squatting in the house before the developer bought it, who still like to hang out around the house. For 2 + million – I don’t want to regularly have to ask the neighborhood characters to loiter elsewhere.
Now, we don’t know for certain which property you’re talking about, but imagine you’re talking 3373 22nd St, so we’ll go ahead and assume.
According to MLS it closed on 7/10/08 for a sales price of $1,950,000 (original asking was $2,095,000, originally listed 5/1…love that day!), and we heard the buyer represented himself (mls states the same). Last sale was 11/05 for a sales price of $920,000 and has definitely been fixed up since then.
And while I’m asking – I’ll give you a bit of insight from the east bay. We were supposed to close yesterday on our house in Oakland – only the bank hasn’t delivered loan docs yet. We have a jumbo loan and found the very last bank willing to do a 20% loan. Everyone else wanted 25% down or ridiculous rates. There is no problem with the loan – the bank is just backed up. We likely won’t close until sometime next week and the sellers are rolling with it. I was fully prepared to have to beg and plead for them not to walk – but we are hearing from our agent that a lot of deals are closing late. Is it the same over there?
Deals closing late, or the begging and pleading? We’re seeing a bit more of both. ;-)
Thanks for the insight on the East Bay, thanks for your email, and thanks for reading!