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333 Main – Infinity 3BR rental

by sfishome on February 13, 2010

3 bedroom Craigslist rental at 333 Main St, San Francisco – Infinity “tree top”.

Asking price on Craigslist is $5,400. I like to beat up the Infinity for over-priced hype – the “new car” theory of having it depreciate the moment you get the keys. But if the numbers are to be believed here… per tax records the four 3BR condos on the 8th floor all sold for roughly $1.1 million.

Per the NYTimes Rent vs Buy calculator it’s a smarter decision to buy this unit for $1.1 million than it is to rent it for $5,000 after just 4 years. I recommend at least a 5 year hold plan to all my clients.

Even if you can get the rent down to $4,000 it’s smarter to buy within 16 years. What I like most about this investment is that 3 bedrooms are probably the easiest to rent as they are the rarest of units in the majority of the City.

Of course you can play with the rent vs. buy assumptions to draw your own conclusions. At a 5% 30 year fixed it’s 4 years, at 6% it’s 8 years before it’s smarter to buy, at 7% it’s 16 years.

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