750-754 Pacific Ave

San Francisco, CA 94133

$2,250,000D+

None bd · None ba · 12,222 sqft · Built 1907 · MultiFamily · Active · 88 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $14,779/mo
• Mortgage (P&I): −$11,799
• Tax + insurance: −$3,750
• HOA: −$0
• Vac / Maint / Mgmt: −$3,104
• Net cashflow: $-3,874/mo
• Annual: $-46,486/yr
• Cap rate: 4.23%
• Cash-on-cash: -7.38%
• DSCR: 0.67
• 1% rule: 0.66%
• Cash to close: $630,000

Investor read

• This is a 3 × 2-bed/?-bath units multifamily listed at $2.25M. Condition is rated good.
• At list price, monthly cash flow is $-4k ($-46k/yr) — negative. Per door: $-1k/mo.
• To cash-flow at today's rent, offer at most $1.69M (24.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.48M (34.3% below list).
• It's been on market 88 days — a 6% lower offer ($2.12M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.48M (34.3% below list) — sets the bar for 1% rule.
• In year one you build about $160k of equity ($16k loan paydown + $145k appreciation (6.4% 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.
• Zoned schools: Lilienthal (Claire) Elementary (669 students, 19% FRL); Giannini (A.P.) Middle (1,192 students, 34% FRL); Lowell High (2,632 students, 37% FRL) — zoned schools average 30% FRL vs 49% district-wide (19 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1907 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+16.9%/yr); 89 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 48d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 60% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 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.
• 5 sale attempts since 3y 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.
• By year 2, paydown + projected appreciation supports a ~$257k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.2% vs local median 2.2% 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 $4,926/mo per unit this rent would consume 68% of the median local household income ($87k/yr) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 88 days. Have you received any prior offers? Is the seller open to a 34% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1907 — 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?