San Francisco, CA

This loan is a second deed of trust on a multi-family property in San Francisco, CA. San Francisco is a highly desirable urban market known for its historic architecture, vibrant neighborhoods, cultural amenities, and proximity to major employment, educational, and healthcare centers. The subject property is located in the Haight-Ashbury neighborhood, a historic and walkable district characterized by Victorian and Edwardian residences, local restaurants, cafés, boutique shops, grocery markets, and entertainment concentrated along the nearby Haight Street corridor. The neighborhood also provides convenient access to public transportation and major institutions, including the nearby UCSF campus. The subject, located at 905 Ashbury Street, is a five-unit multifamily investment property situated on a 2,652-square-foot lot with approximately 25 feet of frontage along Ashbury Street. Originally constructed in 1906, the three-story building contains approximately 4,439 square feet of gross building area and 3,798 square feet of net rentable area. The property consists of two studio apartments, two one-bedroom units, and one four-bedroom, two-bathroom unit, with an average unit size of approximately 759 square feet. At the time of the appraisal inspection, three of the five units were occupied and two were vacant. The Borrower purchased the property in 2004 and has maintained it as a long-term rental investment. The property currently generates approximately $13,650 per month in rental income and is projected to generate approximately $21,000 per month once fully stabilized. The existing first mortgage is held by Avid Bank at a 4.00% interest rate, with a principal balance of approximately $1.11 million and a maturity date in May 2029. The purpose of the loan is to pay off an existing loan that is cross-collateralized with another property owned by the Borrower, allowing the properties to be financed separately in the future. Upon maturity, the Borrower intends to refinance the loan with long-term financing. The Borrower is a self-employed business owner who has operated a handyman business since 2015 and has demonstrated consistent cash flow, with approximately $322,787 in deposits over the past five months. He also owns an eight-unit multifamily property valued at approximately $3 million, while his primary residence has approximately $1.2 million in protective equity. The Borrower has a FICO score of 806. The loan will have a maturity of 24 months.