Purchased as “a great investment” for $608,000 in March of 2021, which was actually $31,000 under asking at the time, the 493-square-foot, junior one-bedroom Portside II unit #505N at 403 Main Street returned to the market listed for $625,000 four months ago, a sale at which would have represented a net 2.8 percent increase in value for the condo over the past three years.

Outfitted with a bedroom alcove (which separates a junior one-bedroom from a studio), with access to full range of building amenities (including a gym and outdoor heated pool) and a waterfront location with peekaboo views, “walking distance to some Silicon Valley’s top tech headquarters,” the list price for the South Beach condo was just reduced to $575,000 by way of an interim “special pricing” reduction to $599,000 last month, a sale at which would now represent a 5.4 percent drop in value for the unit since the first quarter of 2021, net of the pandemic-era squeeze.

If you think you know the market for South Beach condos and great investments, now’s the time to tell.  For those running the numbers at home, the HOA dues for the unit are currently running around $677 a month, which includes earthquake insurance, with an additional $181 a month for parking.

And yes, three years would constitute a relative “short-term” hold.  But strangely enough, the last three “short-term” holds for the same unit all yielded net increases in value, with a 30.3 percent gain from 2003 to 2004, a 5.8 percent gain from 2004 to 2005, and a 9.0 percent gain from 2010 to 2012, which happens when the market is actually surging/appreciating.

10 thoughts on “Price Cut(s) for A Great South Beach Investment”
  1. If sold at asking, the all-in monthly cost is projected to be $4,606 per Redfin. I took a quick look around on Craigslist and there are definitely bigger, better rentals available in this immediate area at that price, such as an 851 sf, proper 1 BR / 1 BA with large island and respectable dining table for four at the Lumina for $4,650.

    1. SF has never had a time when buying resulted in a lower all-in monthly cost than renting. Even at the bottom of the 2008 recession. We can compare cap rates over time, but renting has pretty consistently been a better short term trade. Not saying it will always be like that going forward – the historical perspective is largely a function of price appreciation – but there is no law of nature that you get to buy this condo and rent it out at a cash flow profit on day one.

      1. Unless they manage to purchase this at a very steep discount, any potential investor purchasing this place now is going to be someone who is betting on medium-to-long term price appreciation of the asset. Any short-term financial win that comes if they manage to refinance when interest rates go lower late this year/early next year will just be gravy.

  2. folks, how long have you lived here?
    SF is boom or bust and the tourism alone will keep us growing as the streets get cleaned up.
    These prices, you wont see again unless our economy just collapses. Think Jimmy Dimon will let that happen?
    Maybe this one wont work for all of you, put an offer in, put half down. In 4 years, you will buying a single family.
    Or realizing the positive cash flow then is helping to make the payments on the next home you want.
    Sometimes, you just got to believe… you got stadiums, hotels, restaurants and capitalism is not a bad thing to believe in.
    How do you think we become rich in SF…. Real Estate that no one else wants!

  3. Walking distance to Silicon Valley HQs? It would take a very fit person a day to walk from South Beach to the nearest SV HQ. I think the marketing writer meant “San Francisco HQ”.

  4. UPDATE: The list price for 403 Main Street #505N has just been further reduced to $528,000, an “at asking” sale at which would now represent a 13.2 percent drop in value for the unit since purchased as “a great investment” in the first quarter of 2021, despite (mis)reports of a “surging” market.

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