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Make it Work: 200-204 Funston Avenue

Hey, let's do a little business.200-204 Funston Ave. is an Edwardian four-unit (or what the cool kids call a "fourplex") in "Park Presidio Annex" (i.e., Inner Richmond)— two studios, two one-beds. Cost for this 3,485 sq. foot ($343.76 per) investment? $1,198,000. Three of the units are vacant, so rent control is only an issue in one of them. The bad news: the occupied unit is one of the one-bedrooms. Hurrumph.

Maybe the statute-repressed rent can be made up in filling the other units? They look pretty nice: updated kitchens with stainless appliances and granite counters; updated baths as well. The proximity to the Clement Street commercial corridor is surely appealing. The last reported selling price was in April 2006 for $1.2M, so there's a bit of realism in the current asking price at essentially the same level. So is it worth it?


Would the rent of those four units come close to paying mortgage service, let alone make you a profit? Assuming the buyer has 20% down, we don't think so. By our (admittedly poor) math, rental income would need to be around 6k/month. Squeezing that from two studios, a one-bedroom, and another one-bedroom that's rent-controlled would be difficult, and this scenario doesn't even consider fun things like maintenance costs. Do you agree? What did we miss? How would you sharp-minded readers make this sucker work?
·200-204 Funston Ave [MLS]