How do you evaluate a San Francisco investment property?

The historic multifamily building at 837 Fillmore Street — 837 Fillmore Street, a prior nine-unit project in Caley Zheng’s portfolio.

Multifamily case studies: 4
Apartments in those buildings: 20
Building size range: 2–9 units

Data: MLS sales through October 22, 2026; ZIP figures pool January 2024 onward. Portfolio examples are historical.

Define the investment

Clarify the property type, purchase budget, available reserves, expected holding period, and how much involvement you want in operations.

Verify the records

Request the current rent roll, leases, operating statements, expense records, building reports, and available permit history. Distinguish documented facts from seller estimates.

Compare scenarios

Review income, expenses, financing, vacancy, maintenance, and major capital work under more than one scenario. Label every assumption and avoid treating projected returns as assured results.

Bring in the right specialists

Use qualified lending, tax, legal, inspection, and property-management professionals for the issues that require their expertise. Resolve material questions before making a commitment.

The 2–4-unit and 5+-unit purchase markets differ

San Francisco income-property sales, 2026 YTD

San Francisco income-property sales, 2026 YTD
MLS building size	Closed sales	Median price	Median price / unit	Median reported cap rate	Sales reporting a cap rate	Median days on market	Median sale / final list
2-4 units	368	$2,055,000	$770,000	4.63%	194	16	106.8%
5+ units	134	$2,830,000	$365,000	5.68%	121	43	97.1%

TurboHome MLS analysis [M]. San Francisco closed sales through October 22, 2026. 2026 YTD is January 1–October 22; earlier years are full calendar years. Different sale samples, not matched-property appreciation. Cap rates are listing-reported for the stated subset, with values restricted to 0%–20%. They are not independently underwritten operating yields. The price-per-unit median is its own statistic, not median building price divided by an assumed unit count.

A CLOSER LOOK

Median income-property price per unit, 2023–2026 YTD

2-4 unitsHover or focus a point to explore

The 2026 YTD median price per unit is $770,000 for 2–4-unit income listings and $365,000 for 5+-unit listings. That gap is not an automatic conversion profit: unit size, tenancy, condition, legal status, operating costs, financing and location differ. The MLS size classification must also be checked against the lender’s accepted legal unit count. [M]

ZIP-level income-property comparisons need sample sizes

Selected ZIPs: 5+-unit sales, January 2024–October 2026

Selected ZIPs: 5+-unit sales, January 2024–October 2026
ZIP and source area label	Closed sales	Median price / unit	Cap-rate observations	Median reported cap rate
94102 · Civic Center / Tenderloin / Hayes Valley	13	$335,000	10	6.53%
94103 · SoMa	22	$273,000	20	7.27%
94115 · Western Addition / Pacific Heights	31	$354,000	26	5.80%
94117 · Haight-Ashbury / Western Addition	52	$369,000	51	5.88%

Window: January 1, 2024–October 22, 2026, not 2026 YTD. ZIPs cover multiple neighborhoods. Samples below 20 are directional, especially the 13 sales and 10 cap-rate observations in 94102. These are reported cap rates, not net returns or evidence of rent growth. [M]

A transfer-tax threshold can change the exit budget

General transfer-tax estimate around $5 million

General transfer-tax estimate around $5 million
Sale consideration	General rate per $500 or portion	Estimated tax on full consideration
$4,999,999	$3.75	$37,500
$5,000,000	$11.25	$112,500

The general schedule applies the selected tier to the full consideration. Estimates exclude exemptions, special caps and entity-transfer rules. Confirm the transaction with title/escrow. [T]

At the general schedule, $4,999,999 produces an estimated $37,500 transfer tax, while $5 million produces $112,500. Model the $75,000 difference in net proceeds before comparing offers or exit prices. The supplied MLS sample records 41 sales at $4,975,000–$4,999,999 and one at $5,000,000–$5,024,999 from January 2023 through October 22, 2026. That bunching is consistent with threshold incentives, but it does not establish the reason for each negotiated price. [M, T]

A CLOSER LOOK

Building sizes in the curated portfolio

Apartments by buildingHover or focus a point to explore

Five selected prior properties from Caley Zheng’s portfolio. This is a curated sample, not a representation of the San Francisco market.

EXPLORE THE NUMBERS

What changes a building’s income?

Adjust the assumptions and watch the scorecards and chart respond. These are illustrative planning examples, not market data or actual property results.

Purchase price $3,000,000Apartments 5Average monthly rent per apartment $3,000Vacancy allowance 5%Operating expenses (% of effective income) 35%

Scheduled annual rent: $180,000
Annual net operating income: $111,150
Illustrative cap rate: 3.71%

A CLOSER LOOK

Where the annual rent goes

Income and costsHover or focus a point to explore

Expenses are a share of income after vacancy. This simplified illustration excludes financing, income taxes, and capital expenditure reserves. Replace assumptions with verified property records.

Methodology

MLS context is supplied by TurboHome. Annual figures are full calendar years and 2026 YTD ends October 22. ZIP tables pool January 2024 through October 22, 2026. Cap-rate medians use only the stated reporting subsets and do not establish rents or property returns. General transfer-tax calculations were checked against the official affidavit; exemptions and special caps are excluded. Portfolio counts are drawn from the linked case studies: Dolores 5 units, Birch 2, Fillmore 9, and Linden 4. Waller is a single-family home and is excluded from the multifamily scorecards. The editable income tool uses hypothetical rents and costs; it does not report actual operating performance.

Sources

PUT THIS GUIDE IN CONTEXT

Explore the neighborhoods.

Pair your buying or investment research with local places and neighborhood market data.

Define the investment

Verify the records

Compare scenarios

Bring in the right specialists

The 2–4-unit and 5+-unit purchase markets differ

ZIP-level income-property comparisons need sample sizes

A transfer-tax threshold can change the exit budget

What changes a building’s income?

Methodology

Sources

Explore the neighborhoods.

Look closer at your next investment.