In case you haven't heard, I'm not a fan of TIC's. When talking to buyers about them for the first time, my strongest reasons are that the only loans available for them have insanely high rates; you are getting into financial bed with a bunch of strangers; and your chances of ever seeing your buidling convert to condos is infinitesimal. TICs also took the hardest hit when the market tanked.
The exception to my rule is TICs in two-unit buildings. A two-unit building that is owner-occupied is relatively easy to convert to condos. You can also share a single conventional loan with your partner on a two-unit building. And you only have one other owner to deal with instead of a snarled mess of three, four, or even six separate partners.
Because I like TICs in two-unit buildings, I can recommend with confidence this little cottage TIC in North Beach. It sits at the front of a lot with a single family home behind it. The estimated value on this jewel is $375,000.
Let me tell you the best things about this gem:
1. The location - heart of North Beach, walking distance to Grant Avenue, Columbus Avenue and Washington Square.
2. The setting- it backs onto a lush garden that cries out for barbecues and outdoor living.
3. The charm factor- peaked roof, beamed ceilings.
4. The VRBO rentability factor- you need to live in the home full-time to qualify it for condo-conversion, but if you don't, you can still enjoy the advantage of renting it out as a 'vacation rental by owner' (VRBO). We had a VRBO specialist come through the home awhile back. They estimate a $4,000/month income for the home, even after factoring in vacancies.
5. The pied-a-terre factor. I can't tell you how many times I've had out-of-towners describe wanting a second home exactly like this one. If you are one of them, what are you waiting for?
There are only two downsides to the home:
1. Size-- under 400 square feet. Yes that's small, but I've seen even smaller contemporary condos that feel like hotel rooms with wet bars. By comparison this place offers a uniquely livable 'only in San Francisco experience'.
2. No parking-- unfortunate, but what do you expect for under $400,000? Add a garage the price would jump at least $50,000.
For more information on this charmer, just call me at 415-577-0809 and I'll get you inside. It's very easy to show.
PS: we are being mysterious about the address because the home has yet to go on the market. When it does, all will be revealed.
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