Fixing up this place would be a perfect target for grant monies. (cc @LilyRaabe @ruthgrace @gaardn)
If we can knock the rent down to $7k by offering to fix it up on condition that we become co-owner for the building. Looks like 2018 property taxes were $90219.60. Split three ways, that works out to being about $2506.10/mo for us.
The lot is currently zoned NCT/55-X, which is the same as our current zoning. I’m honestly still not sure how to determine if the parcel is PDR or not with the new SF planning map website, but we’d pay as little as $0 or as high as $30,000.
$10k for the amount of work we’d need to invest in this is absurd. But $7k in rent plus $300,000 in improvements to the building over 5 years works out to be $720,000; $10k/mo plus no improvements is $600,000 over that same time period.
Here’s an idea: we figure out all the work that it would take to bring the space up to use for us, get a quote for it. This includes electrical, HVAC, an elevator, a bigass ramp while the elevator is being built, etc. Then add $7k/mo rent over 5 years to it, minus our share of property taxes, to come up with a figure of our net value add. Then pit that figure against the owner’s proposal of $600,000 over 5 years. I’m confident we could convince the owner that giving us some equity in the building in exchange for us investing a million into it is a damn good bargain compared to renting it out for any value or risking it be left empty in a recession.
Looking forward to today’s call.