“BJ is a leading realtor who has for many years lived and specialized in Noe Valley. Her husband Malcolm is a marketing executive in a software company. They and their 16-year-old Shar Pei, Zelda, split their time between Noe Valley and the Sonoma wine country. “ - hosts words from VRBO listing of 4 units at 4120 24th Street.
BJ (Betty J Droubi) attracted our attention with her market-driven description of the neighborhood. Clearly their building purchase is an investment in a trendy neighborhood rather than a commitment to a community they dreamt of and saved their whole lives for.
“Noe Valley is one of the most sought after addresses in San Francisco among young professionals. A typical walker on the street has a dog and a toddler in tow, and works at Google or Zynga. Noe Valley has a pretty good San Francisco climate, avoiding the worst of the summer fog, and is central to everything without being high density city living.”
The Colton’s listed 8 vacation units on VRBO between San Francisco and Sonoma. We tracked Colton’s activity over time. Over the 16 months, the average monthly rent for a 2 bedroom in Noe Valley increased 11% to $4084 according to myapartmentmap.com
BJ and Malcolm’s rental prices also increased over this time from $1600 to $2000 per week though their costs as owners did not increase.
Their nightly rate increased from $275 in 2012 to $325 in 2013—18% increase.
If we assume most tourists rent by the week for their discounted weekly rate of $2000, they will earn $32,000 in the next 4 months ($8000 per month /$128000 per year)
This is 195% what market rate tenants would pay.
A calendar booked with consecutive shorter stays earns the owners even more money as they are requesting $325-$375 a night ($2275-$2625 per week)
This is only one unit and they are renting out three other units in the building at 4120 24th St.
You can find BJ on VRBO, www.24thStreetApartments.com and
The Colton’s listed 8 vacation units on VRBO between San Francisco and Sonoma.