1955 18th Ave, San Francisco CA 94116¶
List price: $1,150,000
Neighborhood: Inner Parkside (SF District 2)
Zoning: RH-1 (one-family dwelling — lower level is unwarranted, cannot be a second legal unit)
APN: 2116-003D
Built: 1939
MLS sqft: 1,250 (main level only, assessor autofill)
Lower level: Two unwarranted "bonus rooms" + 1 bath — sqft unconfirmed (~900–1,250 estimate)
Lot: 2,495 sqft (25 × 100 ft, standard avenue lot)
Listing agents: Caroline Scott + Bill Berry, Corcoran Icon Properties
Seller: Gary Juliano, Successor Trustee — William A. and Bernice L. Juliano 1995 Trust-Survivor's Trust
Prop 13 assessed value: $79,176 (land $36,241 + improved $42,935) — acquired ~1995
Property tax: $965/year — paid current
Mortgage: None — title clean
Status: Active (listed 05/28/26). Sewer being replaced by seller before going live.
The Case For It¶
The best comp on the same street is 1970 18th Ave — a 4/3.5 renovated and legalized home, 2,346 sqft, that sold for $2,050,000 in June 2025. This property is structurally similar: same street, same era, same lot width. The lower level at 1955 already has two rooms and a bathroom — the legalization path is built on existing structure, not a garage conversion from scratch.
| Comp | Config | Sqft | Sold | Price | $/sqft | Date | Notes |
|---|---|---|---|---|---|---|---|
| 1970 18th Ave | 4/3.5 | 2,346 | Sold | $2,050,000 | $874 | Jun 2025 | Same street — prime comp |
| 2475 18th Ave | 4/4.5 | 1,817 | Sold | $2,015,000 | $1,109 | Nov 2025 | Updated |
| 2024 15th Ave | 3/4.5 | 2,760 | Sold | $2,650,000 | $960 | Jan 2026 | Updated, larger |
| 2027 18th Ave | 5/3 | 1,718 | Sold | $1,700,000 | $990 | 2018 | Dated but directional |
Working $/sqft for renovated/legalized SFH in Inner Parkside: $874–$960/sqft
The gap between list price ($1,150,000) and the legalized-and-renovated comp ($2,050,000) is $900K. The question is whether works cost fits inside that gap.
Lower Level — The Decision¶
This is the whole investment thesis. If the lower level can be legalized, the ceiling jumps dramatically. If it can't, this is a mediocre deal.
What's confirmed:¶
- Seller discloses unwarranted units (SFSD Q4: ✓) and units added without City approval (SFSD Q5: ✓)
- 3R says authorized occupancy is ONE FAMILY DWELLING — lower level is truly unwarranted
- RH-1 zoning: legalization goes through SF's Unauthorized Unit Legalization Program or ADU program, NOT as a second legal unit (no additional density benefit like at 871 42nd which is RH-2)
- Lower level has two rooms + 1 bath — structure exists, plumbing exists
- Pest report calls these "finished basement rooms" with a raised floor system — there is crawlspace below that is inaccessible and uninspected
What's unknown (critical):¶
- Ceiling height — AVID notes "textured tile on ceiling" in north lower room. Could be acoustic tile (dropped ceiling reducing headroom) or direct finish on structure. Min 7 ft required for legalization. Must measure on walk.
- Crawlspace condition below raised floor — pest inspector could not access, noted it needs an opening cut to inspect. Termite activity above means it's likely compromised below too — extent unknown.
- Egress — lower level has sliding doors to back yard (north room). Sliding doors count as egress in California. Need to confirm dimensions (min 20" wide / 24" high clear opening for emergency egress).
Legalization path (if ceiling ≥7 ft)¶
- SF ADU / Unauthorized Unit Legalization Program
- Requires: ≥7 ft ceiling, exterior egress, electrical + plumbing to code, fire separation between levels, smoke/CO detectors
- Cost: $75–175K (permits, architect, code compliance)
- Value added at $874–$960/sqft: ~$790K–$1.2M for ~900–1,250 legalized sqft
If ceiling < 7 ft or crawlspace damage is extensive¶
- Demo or leave unfinished. Reno 2/1 main only.
- Finished value ~$1.25M renovated. Works cost ~$175–250K. Ceiling ~$1.0M.
- Doesn't work at this list price.
Bottom line: do not offer above $1.25M without measuring the ceiling and cutting access to the crawlspace. Below 7 ft or severe crawlspace damage = walk away or lowball.
Red Flags¶
| Issue | Confirmed? | Risk | Est. Cost |
|---|---|---|---|
| Active termites — garage, damage into inaccessible area | ✓ Section 1 | Extent unknown | $15–40K |
| Inaccessible crawlspace below lower level raised floor | ✓ Pest report | Termite/rot unknown | $0–50K+ |
| Lower level ceiling height | ✗ Unknown | Could kill legalization | $0 or deal breaker |
| Roof — 35 years old (reroofed 1991) | ✓ HI | Replacement due | $25–45K |
| K&T + Romex mixed electrical, 100A service | ✓ HI | Needs upgrade | $20–35K |
| Garage fire separation — none | ✓ HI + SFSD Q7 | Code violation | $5–10K |
| Transite siding (asbestos cement) on exterior | ✓ HI | Abatement if disturbed | $10–30K |
| Seismic — anchor bolts non-conforming spacing | ✓ HI | Optional but worth doing | $15–25K |
| Water heater — minor drip noted | ✓ Sewer report | May need replacement | $0–3K |
| Front entry stairs — water damaged support structure | ✓ HI | Needs pest + repair | $5–15K |
| Lead paint (1939 build, pre-1978) | Assumed | Spot treatment | $5–15K |
| Asbestos — interior (possible per era) | Possible | Test + abate | $5–20K |
| Windows — seals broken throughout | ✓ AVID | Replace if remodeling | $15–30K |
| Sewer lateral | ✓ Fixed by seller | None (seller replacing) | $0 |
Not a red flag: - Supply plumbing: COPPER throughout — confirmed by inspector. Not galvanized. Significant cost savings vs. peers. - HVAC: Forced air gas, 11 years old — middle of service life. - Water heater: 6 years old — manageable. - Flood/fire zone: Clean.
Key Unknowns — Must Resolve Before Offer¶
- [ ] Ceiling height — lower level — bring a tape measure. ≥7 ft is the legalization threshold. Measure both north and south rooms, from floor to underside of structure (not to tile if tile is a dropped ceiling).
- [ ] Crawlspace below raised floor — insist that a pest contractor cut an access opening before offer. This is uninspected and could harbor active termites.
- [ ] Egress from lower level — confirm sliding doors open fully and meet egress dimensions (or that there is a separate exterior door).
- [ ] Termite damage extent in garage — get Section 1 remediation quote. Damage described as extending into inaccessible areas — what's behind the sheathing?
- [ ] Ceiling tile situation — is the "textured tile" in north lower room a dropped acoustic tile ceiling? If so, what's the actual height above it?
- [ ] Sewer status — confirm with agent whether sewer replacement is complete (MLS says they were replacing it before going active).
- [ ] Deck off north bedroom (main level) — AVID says "unknown if deck is warranted." Pull permit history for deck.
- [ ] Water heater drip — inspect pan on walk. Minor drip may need replacement sooner than 6 years.
What the Disclosures Confirm¶
Seller (Gary Juliano, Successor Trustee): - Disclosed: unwarranted lower level (SFSD Q4 ✓, Q5 ✓) - Disclosed: code violations (SFSD Q7 ✓) — garage fire separation likely - TDS disclosed: sliding doors hard to open (lower level south room) - AVID: "owner passed away in the house" — disclosed death on premises - Sewer: Seller is replacing before market — motivated to close clean
Inspector (JOC, Ben Green, May 6, 2026): - Roof: built-up gravel + composite shingles, ~35 years old, near end of service life - Electrical: K&T and Romex mixed, 100A service, inspector flagged for repair - Plumbing supply: COPPER where seen (confirmed — not galvanized) - Plumbing waste: cast iron and galvanized steel - HVAC: 11 years old, serviceable - Water heater: 6-year-old 40-gal gas unit - Foundation: raised perimeter + isolated piers, minimally bolted mudsill, anchor bolts non-conforming
Pest (Wellington, Kieran Healy, May 6, 2026): - Section 1 (active): Subterranean termite damage to wood sheathing at right side of garage — extends into inaccessible areas - Section 1 (active): Subterranean termite evidence in garage — soil treatment by drilling through slab recommended - Section 2 (conducive): Water stains in garage/basement walls and ceilings - Section 2 (conducive): Basement partition walls in contact with concrete slab - Further inspection required: Area below raised floor in finished basement rooms — inaccessible, needs access opening cut
Sewer (Fast Response Plumbing, May 12, 2026): - Sewer confirmed compromised: roots in line, house trap shifted - Quote: $6,500. Likely being done before close (per MLS private remarks). - Also noted: water in WH pan — monitor.
3R Report (SF DBI, April 30, 2026): - Built: 1939 - Zoning: RH-1 - Authorized occupancy: One Family Dwelling only - Permit history: New construction 1939, termite control 1957, windows 1967, reroofing 1991, windows 1996, patio door/window 2002 - NOT in mandatory earthquake retrofit program - NOT in flood zone
Title (Old Republic, April 14, 2026): - Title vested in: Gary Juliano, Successor Trustee - No mortgage liens - Clean title, no encumbrances except standard taxes and trust instrument
Total Works Cost¶
Based on confirmed disclosure findings. Assumes legalization path.
| Category | Low | High |
|---|---|---|
| Kitchen gut + remodel (main level) | $70K | $120K |
| Bathroom — main level remodel | $25K | $50K |
| Bathroom — lower level code compliance + remodel | $25K | $50K |
| Electrical — K&T removal + upgrade to 200A service | $20K | $35K |
| Plumbing — waste system (supply is copper, no replacement needed) | $10K | $20K |
| Sewer lateral | $0 | $0 (seller replacing) |
| Roof — full replacement | $25K | $45K |
| Termite — Section 1 remediation + garage repair | $15K | $40K |
| Termite — crawlspace below lower level (unknown) | $10K | $50K |
| Seismic retrofit | $15K | $25K |
| Garage fire separation | $5K | $10K |
| Asbestos — transite siding + possible interior | $10K | $30K |
| Lead paint | $5K | $15K |
| Lower level legalization (ceiling, egress, fire sep, permits) | $75K | $175K |
| Architect + permits (legalization + reno) | $25K | $45K |
| Windows — replace cloudy seals or full replacement | $15K | $30K |
| Front entry stairs repair | $5K | $15K |
| Misc (floors, paint, patio, landscaping, fixtures) | $20K | $40K |
| Total | ~$300K | ~$665K |
| Working midpoint | ~$430K |
Supply plumbing being copper saves ~$25–40K vs. a comparable 1939 home with galvanized pipes.
Sewer being replaced by seller saves another ~$6.5K.
Offer Strategy¶
Framework: Comp $/sqft × finished sqft − works cost − risk buffer = ceiling. List price is irrelevant.
Ceiling Calculation¶
Lower level sqft unconfirmed — range based on typical avenue lower levels: ~900–1,250 sqft. If legalization viable, assume total finished ~2,150 sqft (same assumption as 1970 18th comp).
| Scenario | Finished sqft | × $/sqft | Finished value | − works | − buffer | Ceiling |
|---|---|---|---|---|---|---|
| Demo lower / reno 2/1 only | 1,250 | $1,000 | $1,250,000 | −$200K | −$50K | ~$1,000,000 |
| Legalize lower — conservative (1970 18th comp) | 2,150 | $874 | $1,879,000 | −$430K | −$75K | ~$1,374,000 |
| Legalize lower — base case (blended comps) | 2,150 | $960 | $2,064,000 | −$430K | −$75K | ~$1,559,000 |
Recommended Offer Range: $1,350,000 – $1,500,000¶
Conditional on: 1. Ceiling height ≥7 ft in both lower level rooms (confirm on walk) 2. Crawlspace below lower level inspected — no severe active damage 3. Termite Section 1 estimate in hand (understand full scope) 4. Sewer confirmed replaced by seller
Do NOT go above $1,350,000 without measuring ceiling height and crawlspace inspection.
If ceiling <7 ft or crawlspace damage is severe: offer ≤$1,000,000 or walk away.
Seller Context¶
- Trust sale after death — successor trustee (Gary Juliano) managing estate
- Long-held property (acquired ~1995). Trust step-up in basis at date of death minimizes capital gains exposure.
- No mortgage — no minimum price to cover debt
- Property vacant, no emotional attachment to list price
- Already spending ~$6,500 on sewer before going live — motivated to close
- Very low annual carrying cost ($965/year taxes) — not urgent, but trustee wants clean close
- List price $1.15M is at $920/sqft on main-level sqft only — aggressive for a fixer with unwarranted lower level
Before Offer Checklist¶
- [ ] Walk lower level — measure ceiling height in both rooms (north and south) — bring a tape measure. This is the single most important data point.
- [ ] Check if textured ceiling in north room is a dropped/acoustic tile ceiling — if so, look for the actual structural ceiling above it
- [ ] Pest contractor — request access opening be cut into crawlspace below lower level — do not offer without this
- [ ] Confirm sewer replacement status — is it done? Get confirmation in writing.
- [ ] Get Section 1 termite remediation quote — understand scope of garage damage and soil treatment cost
- [ ] Electrician walk — confirm K&T hot or dead, scope for upgrade to 200A with panel
- [ ] Contractor walk for legalization quote — need architect or GC who does ADU work to quote the lower level
- [ ] Egress check — confirm sliding doors to back yard open fully and meet code dimensions
- [ ] Deck on north bedroom — is it permitted? Pull permit history from SF DBI.
- [ ] Water heater pan — check for active drip. If leaking, factor in replacement ($3K).