Investment Property

If you’re thinking of buying investment property, you need to know that continually changing legislation and ordinances may significantly impact what you can do with your building, ranging from whether you can ever live in it, to what your rights and responsibilities are regarding your tenants.  To get started, you should check out the website address for the San Francisco Residential Rent Control Board where you can get information and download the latest copies of the Rules and Regulations and Rent Ordinance.  Some other ideas are joining the Small Property Owners of San Francisco, who keep up with proposals under consideration by the board of supervisors.

Beginning the process of looking for an investment is similar to starting the search in buying a home.  You need to figure out what you can afford, where you want to buy, and what is important in your purchase and identify target neighborhoods.

Prior to going to open houses, you should have an idea of what to look for when viewing a property.  You should also take into consideration the difference between owner occupied and tenant occupied buildings.

Down payment requirements are usually higher in investment property than residential owner occupied property, for example, for a 1-4 unit tenant occupied building, you may need 25 percent down, and in 5 units and above, 30 percent and above is needed and building income plays a significant part on what is required. Also, the types of financing may be more limited.  To get scoop on what is available to you, find out what you can afford by talking with a mortgage broker or lender; it very well could affect what type of property you will purchase.