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Old 03-23-2013, 04:07 PM
 
7 posts, read 7,561 times
Reputation: 11

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Hi everyone. I have been reading the posts here for a bit on the current SF home prices and the market in general for 2013.

We currently have a 1bd / 1bath 900sqft loft in SOMA. Bought it back in 2006. We have been renting it out since then because of work issues and we had to leave SF.

It's just now starting to appreciate to the point where we can break even and move on. I know the market is doing well right now but if we wait until say late summer or the even the holidays will that be better for a selling time frame and good price? We currently have tenants in the unit. They are month to month. It's probably worth around $660k give or take right now.

We can wait until next year if needed. Just trying to gauge the best time. We have been waiting for quite a while for this to happen. Can the market change quickly between now and the next 6-10 months? If we are really lucky we could actually make a small profit for our next home. One can hope.

Thanks again for any help or advice you have. Great site for information! Cheers..
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Old 03-23-2013, 04:19 PM
 
Location: State of Transition
102,480 posts, read 108,961,750 times
Reputation: 116585
Not too many people look to buy in the winter months. On the other hand, those that are out looking will find you, because the listings shrink to almost nothing at that time, so you wouldn't have competition.
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Old 03-23-2013, 05:41 PM
 
24,450 posts, read 27,226,611 times
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I would keep it. I'm constantly looking for another condo or home to buy and the bidding wars are getting more vicious. There are many more cash offers too. Before cash offers were prevalent for properties under $400k, but now it's common even on million dollar homes. I'm trying to buy now because I think we will see prices increase a lot more.
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Old 03-23-2013, 06:36 PM
 
Location: Baghdad by the Bay (San Francisco, California)
3,530 posts, read 5,159,568 times
Reputation: 3145
Does it cash flow as a rental? If so, hold on to it. It could be a greatly improving asset in the long run. If not, I'd bet on it topping out for the near term within the next 6-8 months, as you suspect. That's not a lot of upside in the short term. In other words, its probably a good time to sell. Sales that are not cash deals seem to take a long time to close, so trying to eek out another couple of thousand dollars while you are paying for a mortgage on a property doesn't really make much sense.

Test the market. See what you have. It's a good time to be an owner or a seller.
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Old 03-23-2013, 07:02 PM
 
7 posts, read 7,561 times
Reputation: 11
Thank you for the feedback. Maybe end of summer could be the time to sell. Still a few months away and gives me time to give my tenants a heads up.
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Old 03-23-2013, 07:58 PM
 
7 posts, read 7,561 times
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Sorry, wanted to mention it is not a cash flow property. Usually we have always been under at least $400-500 per month. But we do get a tax credit for the interest on the loan, so that has helped a lot every year. The main reason we kept it going was to save our credit to buy another home down the road.
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Old 03-23-2013, 10:29 PM
 
1,374 posts, read 2,450,787 times
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Quote:
Originally Posted by Nicholas_C View Post
Sorry, wanted to mention it is not a cash flow property. Usually we have always been under at least $400-500 per month. But we do get a tax credit for the interest on the loan, so that has helped a lot every year. The main reason we kept it going was to save our credit to buy another home down the road.
Mortgage interest payment is not a tax credit. It is a deduction under itemized deduction, deducted from your income.
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Old 03-24-2013, 08:23 AM
 
386 posts, read 800,598 times
Reputation: 195
If it is money out of pocket on a monthly basis and you can break even now by selling it, do so now.
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Old 03-24-2013, 08:27 AM
 
11 posts, read 31,112 times
Reputation: 43
I would sell now. You may miss the exact peak but there's definitely a bubble. I have a lot of friends in SOMA and it's clear the current rental prices are unsustainable.
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Old 03-24-2013, 09:47 AM
 
7 posts, read 7,561 times
Reputation: 11
Sounds good. We are going to target end of July.
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