Tuesday, February 06, 2007

188 Noe

Zephyr is now handling this fantastic TIC property, which has been on the market for many months and marketed by several different realtors. Per the MLS it looks like there are two units still available. I did a walk through last spring and I can testify that these units are incredibly spacious, airy, light, have wonderful historic detail and are gorgeously remodelled. I have heard that they are offering fractional financing at 7% fixed for five years, which is a great rate for a six-unit building. Alas, the sticking point is - no parking. You will have to pay for leased parking or make do with a Zipcar.

You should also be aware that when it comes to obtaining insurance and financing six-unit buildings are considered commercial properties. Due to no flaw in the buildings themselves but rather the (unconscionable) way the City and State regulates property all 6-unit TICs come with some potential negatives. Your rates for some basic real estate necessities will likely be higher than typical residential fees and you will have fewer providers and options to choose from. So this is a long buy. In other words, you will go for it because you simply love the place, and are willing to invest for the long term. Of course you can use this as a bargaining point with the seller.


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