Investment Property Loans in San Francisco, CA

San Francisco short-term hosts must be permanent residents living at least 275 nights a year in the unit, hold a business registration and register with the Office of Short-Term Rentals for a $925 fee.

For investors: A non-owner-occupied purchase cannot be run as a guest rental at all, so price any San Francisco investment property on 30-night-plus or long-term leases. The $925 approval lasts two years, and unregistered hosting draws penalties of $484 per day per unit.

Source: San Francisco Planning, Office of Short-Term Rentals FAQ, Oct 2026

Unhosted guest stays are capped at 90 nights a year, an owner of a multi-unit building may register only the unit they live in, and legal ADUs and below-market-rate units are ineligible.

For investors: Living in one flat of a duplex does not open the second flat or a permitted in-law unit to nightly guests. Stays of 30 nights or more fall outside short-term rules and the hotel tax, though rent control and tenant protections may then apply.

Source: San Francisco Planning, Office of Short-Term Rentals FAQ, Oct 2026

San Francisco's hotel tax is 14% of rent on stays under 30 days, and hosts not booking solely through a qualified website company must file and pay an annual return by January 31.

For investors: An owner-occupant renting a room only through a platform that remits the tax may have nothing to file, but any direct booking triggers the annual return, including a zero return in a quiet year. A Tourism Improvement District assessment follows the same January 31 schedule.

Source: San Francisco Treasurer & Tax Collector, Transient Occupancy Tax, Oct 2026

San Francisco's allowed increase on rent-controlled units is 1.6% for March 1, 2026 through February 28, 2027, set at 60% of Bay Area CPI and applied to base rent once every 12 months.

For investors: On a $3,000 unit that is $48 a month, so a pro forma built on market rent growth overstates income on an older San Francisco building. The ordinance places no limit on the first rent for a vacant covered unit, which is where value resets.

Source: San Francisco Rent Board, Learn about rent increases in San Francisco, Mar 2026

Units first certified for occupancy after June 13, 1979, with no earlier residential use, are exempt from San Francisco rent increase limits but have been under its just cause rules since January 20, 2020.

For investors: Newer construction escapes the city cap, though state limits may still apply, while evictions still need a listed just cause and the annual Rent Board fee is collected. Confirm the first certificate of occupancy date in the permit history before relying on the exemption.

Source: San Francisco Rent Board, Partial Exemption for Newly Constructed Rental Units, Oct 2026

Owners must report units to the Rent Board Housing Inventory and obtain a rent increase license before imposing annual or banked increases; condos and 1 to 9 unit buildings joined March 1, 2023.

For investors: Before the first tenant anniversary after closing, confirm the building is reported and the rent increase license is in place, or a planned increase on an inherited tenant cannot be imposed. A missing filing quietly stalls income growth.

Source: San Francisco Rent Board, Learn about rent increases in San Francisco, Oct 2026

San Francisco landlords must register within 30 days of renting unless their only rental is one building under four units or one condo; 2026-27 fees start at $55, plus a $4 state fee.

For investors: A fourplex, or a second duplex, crosses the line, so register after closing and renew each year by the last day of February. The fee steps up with gross receipts, to $95 once San Francisco receipts pass $100,000, for an April through March year.

Source: San Francisco Treasurer & Tax Collector, Register a Business, Oct 2026

Notices served from March 1, 2026 owe $8,245 per tenant for owner move-in, demolition or substantial rehab evictions, capped at $24,733 per unit, plus $5,497 per elderly or disabled tenant or household with children.

For investors: Buying a San Francisco two-flat to move into one unit means budgeting up to $24,733 plus any add-on for the occupied flat. Ellis Act withdrawals cost more, $11,110.05 per tenant for notices served in this period, so price a vacant-building strategy accordingly.

Source: San Francisco Rent Board, Current Rates including Rent Increase, Relocation, Security Deposit, Mar 2026

San Francisco's transfer tax applies one rate to the whole price: 0.68% from $250,000 to under $1 million, 0.75% to under $5 million, 2.25% to under $10 million, and 5.5% to 6% above.

For investors: Because the rate covers the entire price, a fourplex at exactly $1,000,000 pays $7,500 against $6,800 just below it. Changes in control of an entity that owns San Francisco property are taxed as well, so restructuring ownership is not a workaround.

Source: City and County of San Francisco Office of the Assessor-Recorder, Transfer tax, Oct 2026

San Francisco's secured property tax rate for fiscal year 2026-27 is 1.18162182% of assessed value, and the Treasurer mails the annual bills in October.

For investors: At that rate a $1,600,000 purchase carries roughly $18,900 a year before direct charges on the bill. A supplemental bill, often prorated, usually follows the reassessment at sale, so hold cash for it during the first year of ownership.

Source: San Francisco Treasurer & Tax Collector, Secured Property Taxes, Oct 2026

San Francisco's Mandatory Soft Story Program covers wood-frame buildings with five or more units, two or more stories over a soft or weak story, and a construction permit filed before January 1, 1978.

For investors: Before buying a pre-1978 building of five or more units, search the city's soft story property list and obtain the retrofit permit and completion records. An unfinished retrofit leaves the buyer with engineering, permit and construction costs, which belong in the offer price.

Source: City and County of San Francisco, Earthquake Safety Implementation Program, Soft Story, Oct 2026

A San Francisco seller must give the buyer a Report of Residential Building Record showing authorized use and permit history; it costs $379 per building and takes seven to ten business days.

For investors: Read the 3R report before removing contingencies: a building marketed as a fourplex whose report shows three legal units has a unit that may not be lawfully rentable. Plumbing and electrical permits are not included, so pull full building records too.

Source: San Francisco Department of Building Inspection, Request a Report of Residential Building Record (3R report), Oct 2026

UCSF describes itself as San Francisco's second-largest employer, with 5,063 academic and 22,179 non-academic employees and medical centers at Parnassus, Mount Zion and Mission Bay.

For investors: Clinical and research staff on shifts at Parnassus, Mount Zion and Mission Bay value short commutes, which supports leasing for small buildings near those campuses. Residents and fellows rotate on training calendars, so expect some predictable annual turnover.

Source: University of California, San Francisco, About UCSF, Oct 2026