Posted by Ed Garcia on January 06, 2001 at 09:44:41:
Kelly,
Here are the choices I see other than a TIC (tenancy in common) at 7:15 a.m. and before I’ve had my first cup of coffee.
See if the house can qualify and be turned into 2 condos.
Check the zoning to see if it can be converted into a duplex.
See if It can be turned into a CO-OP ( Cooperative) . Kelly a Cooperative is an apartment building, owned by a corporation and in which tenancy in an apartment is obtained by purchase of shares of the stock of the corporation and where the owner of such shares is entitled to occupy a specific apartment in the building. In California, this type of ownership is called a “stock Cooperative”.
Borrow against the property, matching the loan payment to 75% of the income.
Kelly, if you decide to borrow against the property, call me, and I’ll help you. Don’t worry about showing income, there are programs out there such as NIQ’s, Stated Income, NIV"S, etc. Kelly, I really wouldn’t rule out selling the property. The timing seems right; you could use the money, and re-invest in property that is not so inflationary. You know the bubble is eventually going to bust. I don’t know how often you’ll be visiting S.F. but if it’s just on occasion, it would be cheaper to stay at a hotel, when you consider taxes etc.
Posted by KElly, Phoenix on January 05, 2001 at 10:00:48:
This is the first time I have posted, but have been reading this board for months. I own a big set of flats in San Francisco’s Haight/Ashbury that I bought in January 1998 for $565K, this was a bargain because the city was going to red flag it. I cured the problems, moved in to the larger upper unit took on two roomies and rented the lower unit for $2600. In August I decided to move to ARizona, I rented out two more rooms in my unit with the understanding that I use the flat when I am in town and I want to keep the place for me and my kids. However, the prices in SF continue to be nuts. the comps are about 1.2 to 1.7. What people are doing are selling as TIC’s. If I took on a partner for the downstairs flat, I guess value at about $600k how would that be financed? How do I get cash out of the deal? In SF owner move ins require 50% ownership which is the part I don’t like about the deal. Upstairs unit (mine) is about 3,000 square feet, downstairs about 1,500. I am in the process of putting on new roof and painting. Also, I have only the rental income from that property right now and am living off the sale of another one and trying to start my own business. I bought the Arizona house on stated income.
I do have a partner in mind, he has no cash, but great income.
Also, with regard to taxes, I sold a rental property that I had lived in and will claim residence, if i do something now on this property how does that work. Yes, I know I will talk to tax guy, but wanted y’all to have this info when chewing on this. Thanks so much.