755 Bush St

San Francisco, CA 94108

$9,195,000B-

11 bd · 28.0 ba · 16,588 sqft · Built 1916 · MultiFamily · Active · 78 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $94,308/mo
• Mortgage (P&I): −$48,220
• Tax + insurance: −$11,904
• HOA: −$0
• Vac / Maint / Mgmt: −$19,805
• Net cashflow: $14,380/mo
• Annual: $172,556/yr
• Cap rate: 8.17%
• Cash-on-cash: 6.70%
• DSCR: 1.30
• 1% rule: 1.03%
• Cash to close: $2,574,600

Investor read

• This is a 11-bed/28.0-bath multifamily listed at $9.20M.
• At list price, monthly cash flow is $14k ($173k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($94k rent vs $9.20M).
• It's been on market 78 days — a 6% lower offer ($8.64M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $8.64M (6.0% below list) — sets the bar for market timing.
• In year one you build about $642k of equity ($64k loan paydown + $578k appreciation (6.3% local appreciation)).
• Location reads 76/100 on livability (#90 in CA, #3,143 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• San Francisco Unified (urban): math 50% / reading 56% proficiency, ranked #322 of 1,400 in CA (top 23%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: built in 1916 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+14.3%/yr); 28 active listings in the ZIP; 750 units permitted in San Francisco County in 2024 (688 in 5+ unit buildings).
• San Francisco County population projected at +39% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 6 sale attempts since 28y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $5.13M; list at $9.20M implies a 79% gain — meaningful room to come down on a strong offer.
• At projected returns (6.3% appreciation + 8.0% rent growth), your $2.57M cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$1.03M cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 8.2% vs local median 2.1% in San Francisco — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
• At $94,308/mo this rent would consume 1731% of the median local household income ($65k/yr) (locally 1314% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 78 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1916 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.