89 Heather Ave · San Francisco, CA 94118

$3,995,000

144 bd · 12.0 ba · 9,678 sqft · MultiFamily public records · 39 Days on market

Built 1951 4,970 sqft lot $413/sqft · at area comps Est $3924k · at est.

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Why this score? — see what drove the A- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• DSCR +10.0/10.0
• Appreciation +9.0/10.0
• 1% rule +8.1/10.0
• ARV discount +6.7/15.0
• Rent growth +5.0/5.0
• Schools +5.0/10.0
• Livability +3.8/5.0
• Condition / age +2.5/5.0

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 12 units. confirmed

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks MLS

Located on a quiet residential block in one of the city's most desirable rental neighborhoods, 89 Heather Avenue presents a rare opportunity to acquire a well-maintained 12-unit apartment building with significant income upside. Situated in the highly sought-after Jordan Park / Laurel Heights area of San Francisco, the property offers strong in-place cash flow combined with future rental growth potential. Built in 1951, the three-story building consists of twelve spacious one-bedroom / one-bathroom apartments, all featuring identical floor plans with four well-proportioned rooms. Each unit includes individual gas forced-air heating and gas stoves, as well as hardwood floors throughout. Seven units have been remodeled, including updated electrical subpanels, while the remaining units retain original fuse-based electrical panels. The rear of the building has dual-pane windows, while the front maintains single-pane windows. Pillow test fire alarm sounders were completed approximately six years ago. A seismic retrofit has been completed with CFC issued.

Key facts

• Gas stoves
• Three story building
• Dual pane windows

Tags

• THREE STORY BUILDING
• GAS STOVES
• HARDWOOD FLOORS
• SEVEN UNITS REMODELED
• UPDATED ELECTRICAL SUBPANELS
• DUAL PANE WINDOWS

What this means for you Summary

Snapshot

• This is a 12 × 1-bed/1-bath units multifamily listed at $4.00M.

Deal economics

• At list price, monthly cash flow is $18k ($215k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($53k rent vs $4.00M).
• Recommended offer: $3.88M (3.0% below list) — sets the bar for market timing.
• Cap rate 11.7% 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.

Location & tenants

• 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.
• Market conditions: Rents rising fast (+17.1%/yr); 54 active listings in the ZIP; high-income renter base; 750 units permitted in San Francisco County in 2024 (688 in 5+ unit buildings).
• At $52,520/mo this rent would consume 384% of the median local household income ($164k/yr) (locally 1780% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• In year one you build about $344k of equity ($28k loan paydown + $316k appreciation (7.9% local appreciation)).
• San Francisco County population projected at +39% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (7.9% appreciation + 8.0% rent growth), your $1.12M cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$551k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 39 days — a 3% lower offer ($3.88M) is reasonable based on typical stale-listing flexibility.
• Current owner paid $449k; list at $4.00M implies a 790% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1951 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $3,875,150 (3.0% below list)

Questions for the listing agent

1. It's been on market 39 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Built in 1951 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
7. 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?
8. 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.
9. 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.
10. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.31% ✓
• Cap rate: 11.68%
• Cash-on-cash: 19.25%
• DSCR: 1.86
• GRM: 6.3

CMA / ARV

• ARV (median comp): $3,923,814
• List price: $3,995,000
• Delta: 1.81%
• Verdict: FAIR
• Comps: 15 within 1.0 mi

Projected returns pro-forma

7.92% appreciation · 8.0% rent growth · sell at horizon

5-year hold

• IRR: 37.6%
• Equity multiple: 3.72×
• Total profit: $3,043,781
• Equity at exit: $3,012,849

10-year hold

• IRR: 35.6%
• Equity multiple: 8.76×
• Total profit: $8,677,354
• Equity at exit: $5,959,366

Cash invested: $1,118,600 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (CITY): 0 Strongly Tenant-Friendly
• State California: 18 Strongly Tenant-Friendly · D+13
• County: — inherits STATE
• City San Francisco: 0 Strongly Tenant-Friendly · D+57

SF Rent Ordinance + Eviction Protections; relocation $10k+; one of strictest in US.

Methodology + full state rankings →

ZIP-level market 94118

• Home prices YoY: 3.3%
• Rents YoY: 17.1%
• Active inventory: 54
• Price-to-rent: 76.1×

Monthly cashflow live

• Estimated rent: $52,520 high
• Mortgage (P&I): −$20,950
• Tax from tax record: −$928 /mo · $11,131/yr
• Insurance: −$1,665
• HOA: −$0
• Vacancy / Maint / Mgmt: −$11,029
• Net cashflow: $17,948

Break-even live

Break-even rent $29,801

Max offer price $3,995,000

Occupancy floor 61%

Sensitivity live

Price	-10% $20,210	-5% $19,079	+0% $17,948	+5% $16,818	+10% $15,687
Rent	-10% $13,799	-5% $15,874	+0% $17,948	+5% $20,023	+10% $22,097
Rate	-1.0pp $19,960	-0.5pp $18,964	base $17,948	+0.5pp $16,913	+1.0pp $15,860

12-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 12× units	1	1	$52,524
Total (12 units)			$52,520

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $998,750
• Closing costs: $119,850
• Reserves months: —
• Total cash needed: —

Listing history 3 events

1. 2026-05-07
   historical Contingent - Show 1065-char remark

   Show marketing remark (1065 chars)

   Located on a quiet residential block in one of the city's most desirable rental neighborhoods, 89 Heather Avenue presents a rare opportunity to acquire a well-maintained 12-unit apartment building with significant income upside. Situated in the highly sought-after Jordan Park / Laurel Heights area of San Francisco, the property offers strong in-place cash flow combined with future rental growth potential. Built in 1951, the three-story building consists of twelve spacious one-bedroom / one-bathroom apartments, all featuring identical floor plans with four well-proportioned rooms. Each unit includes individual gas forced-air heating and gas stoves, as well as hardwood floors throughout. Seven units have been remodeled, including updated electrical subpanels, while the remaining units retain original fuse-based electrical panels. The rear of the building has dual-pane windows, while the front maintains single-pane windows. Pillow test fire alarm sounders were completed approximately six years ago. A seismic retrofit has been completed with CFC issued.

2. 2026-04-13
   listed $3,995,000 Active 1065-char remark

   Show marketing remark (1065 chars)

   Located on a quiet residential block in one of the city's most desirable rental neighborhoods, 89 Heather Avenue presents a rare opportunity to acquire a well-maintained 12-unit apartment building with significant income upside. Situated in the highly sought-after Jordan Park / Laurel Heights area of San Francisco, the property offers strong in-place cash flow combined with future rental growth potential. Built in 1951, the three-story building consists of twelve spacious one-bedroom / one-bathroom apartments, all featuring identical floor plans with four well-proportioned rooms. Each unit includes individual gas forced-air heating and gas stoves, as well as hardwood floors throughout. Seven units have been remodeled, including updated electrical subpanels, while the remaining units retain original fuse-based electrical panels. The rear of the building has dual-pane windows, while the front maintains single-pane windows. Pillow test fire alarm sounders were completed approximately six years ago. A seismic retrofit has been completed with CFC issued.

3. 1989-05-01
   soldstatus $449,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast CA · Resets to sale price

• Current annual tax: $11,131 · $928/mo
• Projected year-2 tax: $30,362 · $2,530/mo
• Expected delta: +$19,231/yr (+$1,603/mo · 172.8%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥78°F today · 17 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 7/10 Severe 13 unhealthy d/yr today · 13 by 30 yrs out

Taxation est. · year 1

• Rental income: $630,240
• − Mortgage interest: −$223,782
• − Property taxes: −$11,131
• − Insurance: −$19,975
• − Repairs & maintenance: −$50,419
• − Management: −$50,419
• − Depreciation: −$116,218
• Taxable income: $158,295
• Est. tax owed @ 24.0%: −$37,991
• After-tax cash flow: $177,390/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: San Francisco Unified
• NCES district ID: 0634410
• Math proficiency: 50% ▬ 0.00%
• Reading proficiency: 56% ▲ 1.00%
• Median HH income: $81,249
• Composite: 50.14/100
• National rank: #4088
• State rank: #322 of 1400 in CA

Livability — San Francisco

• Score: 76/100
• State rank: #90
• US rank: #3143

Category grades

Amenities A+ Commute A+ Cost of living F Crime F Employment A+ Housing B- Health & safety A+ User ratings C-

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: San Francisco, CA
• County: San Francisco County · 827,552 people
• City population: 827,552
• Metro: San Francisco-Oakland-Berkeley, CA
• Population (ZIP): 39,130
• Household income: $163,995
• Rent vs Own: 64.9% rent · 35.1% own
• Severe rent burden: 1780.0

Population outlook (San Francisco County) Hauer SSP2

• Today (2025): 1,030,936 people
• By 2030: 1,110,409 · +7.7%
• By 2040: 1,270,010 · +23.2%
• By 2050: 1,435,001 · +39.2%
• By 2075: 1,779,074 · +72.6%
• By 2100: 1,966,767 · +90.8%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.64)
• Race & ethnicity: White 49% Asian 32% Two or more races 10% Hispanic / Latino 10% Black 1%
• Hispanic origin (detail): Mexican 6%
• Common ancestry: Romanian 3% Italian 3% Scotch-Irish 2%
• Foreign-born: 25% · China, Canada, South Korea
• Languages at home: 65% English-only · Chinese 15% Spanish 6% Other Indo-European 3%

Political lean MEDSL · San Francisco

• 2024 margin: Solid D (+64.8) · D 80.3% · R 15.5% · Other 4.1%
• 2008→2024 swing: -5.7pp toward R · 2008: 70.5pp · 2024: 64.8pp
• All cycles: 2024: D+64.8 2020: D+72.5 2016: D+76.1 2012: D+70.2 2008: D+70.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 7.92%
• Current HPI: 250.5205
• Rent YoY: ▲ 17.14%
• Metro: San Francisco-Oakland-Berkeley, CA
• State GDP YoY: ▲ 3.21%
• F500 in state: 116

Industry mix (Fortune 500 HQ in CA)

Industry	F500 HQs	Revenue
▸Technology	27	$1,492B
▸Financial Services	3	$174B
▸Retail	3	$44B
▸Insurance	3	$26B
▸Media / Entertainment	2	$115B
▸Pharmaceuticals / Biotech	2	$62B

Price history

+789.8% since first listed

3 events — show timeline

• 2026-05-07 Contingent — San Francisco MLS
• 2026-04-13 Listed $3,995,000 San Francisco MLS
• 1989-05-01 Sold (Public Records) $449,000 Public Records

Property tax history

+1.8%/yr

Latest (2025): $11,131 · +3.0% YoY. Source: county tax records.