lena_surveys
Landlord
I’m assessing a 1-bed new-build flat in San Francisco that has been available for 64 days. The purchase price is $1,285,000 and expected rent is $4,556/month, giving a headline gross yield of roughly 4.3%.
The building appears sound, but I’m concerned that building reserves or recurring charges could materially weaken the deal. My conservative model already allows for vacancy, management, routine maintenance, tenant turnover and one larger repair reserve. I still need to stress-test insurance, property tax and financing costs.
For anyone familiar with San Francisco rentals, which local ownership cost am I most likely underestimating? I’d also be interested in the minimum net yield you would require here, and whether the 64 days on the market would make you push harder on price or investigate a specific issue first.
The building appears sound, but I’m concerned that building reserves or recurring charges could materially weaken the deal. My conservative model already allows for vacancy, management, routine maintenance, tenant turnover and one larger repair reserve. I still need to stress-test insurance, property tax and financing costs.
For anyone familiar with San Francisco rentals, which local ownership cost am I most likely underestimating? I’d also be interested in the minimum net yield you would require here, and whether the 64 days on the market would make you push harder on price or investigate a specific issue first.