674 Rockdale Drive, San Francisco CA 94127¶
List price: $995,000 ($865/sq ft)
Neighborhood: Miraloma Park (SF District 4)
Type: Fully detached 2 bed / 1 bath Mediterranean SFH
Size: 1,150 sq ft living area, 3,310 sq ft lot (0.076 acres)
Lower level: Garage only per MLS — laundry, storage, water closet are unpermitted
Listing agent: Judson Gregory, Compass (415) 722-5515
Seller: The Edward J. Rezos Revocable Trust
Escrow: First American Title — Liz Paglinawan (415) 682-1112
ML#: 426120999
APN: 2948A-023
Inspected: April 28, 2026 (Arnest Inspections)
Status: AS-IS, Fixer/Original (per MLS), trust sale, vacant
Seller Context & Financial Profile¶
Trust sale. Seller (a niece/nephew of the deceased) never lived in the home. Uncle Edward lived there 70+ years and passed away in his sleep May 1, 2025. Seller has limited first-hand knowledge of the property's history — answered "Don't Know" on insurance claims and prior unpermitted work. No emotional attachment; motivated to close.
Tax records reveal: Edward J. Rezos bought the property on Apr 5, 2013 for $562,500 with a $400K conventional mortgage (Stearns Lending). Current assessed value: $692,664; annual taxes: $8,917. The "70 years in the family" claim means prior family members owned it before Edward formalized purchase in 2013 — the 2013 sale was likely a family transfer or he bought out relatives.
Seller's financial position: With a 30-year mortgage at ~2013 rates (~3.5%), 13 years in, remaining balance is approximately $270K–$290K. Closing costs + agent commission (~5–6%) on a $995K sale ≈ $50–60K. Seller's floor to net zero on transaction costs is roughly $820K–$850K. Anything above that is profit — they have room to negotiate.
Red Flags¶
- Knob and tube wiring throughout — 50-amp service only, no grounding, overhead lines too close to rear window (fire/shock hazard). Many insurers won't cover K&T; lenders may require remediation. Full rewire + panel upgrade: $20K–40K.
- Zero seismic upgrades — cripple wall frame, no shear walls, no hold-downs, no post-to-beam reinforcement. Anchor bolts only at past repair areas. Seismic retrofit: $15K–30K.
- Loose asbestos on furnace — gravity feed furnace flagged with loose (friable) asbestos and corrosion. Floor tiles and linoleum throughout also likely contain asbestos (untested). Abatement costs are explicitly excluded from pest report estimates.
- Seller answered "Don't Know" on insurance claims (past 5 years) — pull a CLUE report.
- Fresh paint and staging may conceal moisture/wood damage — inspector explicitly flagged this.
Confirmed Issues by System¶
Structure & Foundation¶
- Wood platform joist over cripple wall frame, concrete foundation
- No seismic upgrades of any kind
- Foundation spalling and efflorescence (moisture saturation)
- Structural engineer recommended for front stairs, basement floor, laundry room, and general seismic reinforcement
Dryrot & Wood Destroying Organisms (Pest Report)¶
Active infestation/damage confirmed in multiple areas:
| # | Location | Cost |
|---|---|---|
| 1 | Basement laundry + water closet — DEMO TO GARAGE (see strategy below) | replaces $15K restore with demo cost (~$3–5K + asbestos abatement) |
| 2 | Foundation sill plate at garage — wood fungi | $3,650 |
| 3 | Soil at side walls embedded into wood siding | $1,975 |
| 4 | Front stair + porch assembly — extensive decay into stucco framing | (included in item 1 scope) |
| 5 | Basement access stairs — broken down | (included in item 1 scope) |
| 6 | Stucco wall test openings (scope of damage unknown) | $700 |
| 7 | Lower-level window sashes + basement exit door — decay | (referred to specialist) |
| 8 | Old electrical panel area — wood decay | $2,800 |
| 9 | Right rear corner — wood fungi (may extend further) | $1,750 |
| Pest report total (with permits) | $27,625 |
Electrical¶
- Knob and tube throughout, including attic
- 50-amp service (severely undersized)
- Overhead wires dangerously close to rear window
- Old service enclosure converted to wire splice box
- No grounding buss, ungrounded receptacles everywhere except kitchen
Plumbing¶
- Copper supply lines (main and branch)
- Poor water pressure — refer to plumber
- Cast iron sewer with visible corrosion on vertical pipe
- No sewer scope done — high risk on a 70+ year old home
- Loose toilet flange (needs plumber)
- Basement toilet dysfunctional
- Shower non-functional
HVAC & Water Heater¶
- Water heater: 1998 — 28 years old, far past warranted lifespan, replace immediately
- Gravity feed furnace with loose asbestos and corrosion — needs replacement or extensive maintenance
- No insulation visible in attic
Roof¶
- Main field: tar and gravel, limited view, satisfactory but needs maintenance (exposed tar areas, parapet coating)
- Front façade: clay tile — old membrane below may be brittle; roofing specialist recommended
- Full roofing inspection not performed
Kitchen & Bath¶
- Kitchen: broken tiles, worn flooring, poor appliances — inspector recommends full remodel
- Bathroom: old/worn, monolithic shower surround, non-functional shower, loose toilet, poor water pressure
- Basement bathroom: dysfunctional toilet, non-functional shower
Exterior & Drainage¶
- Driveway area drain clogged with plants and dirt
- Standing water in drain below front stairs (purpose unknown)
- Water intrusion under garage door in heavy rain
- Moisture under front steps after rain
- Overgrown rear yard, some fencing decay
Other¶
- No smoke or CO detectors (required at sale)
- Fireplace — chimney sweep needed before use
- Potential asbestos in floor tiles/linoleum throughout
- Uneven and damaged floors on lower level
- Old rat droppings in garage (old, not active per seller)
3R Report (DBI Permit History)¶
Built 1930. Zoning RH-1(D) — One Family Detached. Only two permits ever pulled in 96 years:
| Date | Work |
|---|---|
| Aug 14, 1930 | New construction |
| Oct 06, 2006 | Reroofing |
No other permits on record. No active code violations or abatement proceedings. Not in the Mandatory Earthquake Retrofit Program. Not in a flood risk zone. Energy inspection not yet completed (required before sale).
This is a significant red flag. The basement laundry room, water closet, storage rooms, and all other lower-level improvements have almost certainly never been permitted. The 3R confirms the seller's "Don't Know" on prior unpermitted work was probably accurate — there's essentially no permit history to know about.
Agent Visual Inspection (Judson Gregory, Apr 30, 2026)¶
The listing agent's own disclosure is notably candid. Key items beyond what the home inspector caught:
- Kitchen: Cabinets with marks, stains, wear throughout. Counters cracked and stained. Appliances not tested.
- Bathroom: Toilet was recently replaced "for compliance purposes" — suggests it was flagged. Cold water flow slower than hot (plumbing issue).
- Lower level — hole in laundry floor covered with wood: Agent specifically noted "floor near the laundry area shows wear, rot, and softness throughout, including a hole that has been covered with a piece of wood." This is on top of the pest report's $15K estimate for that area.
- Rear garden door nailed shut — access to backyard blocked from lower level.
- Holes in garage walls — light and air entering, open to exterior.
- Not all light fixtures turn on throughout lower level.
- Living room: Evidence of possible past water intrusion near the windows.
- Exterior: Significant wear, needs repair and painting. Rear fences older and leaning. Water intrusion and rot beneath front stairs confirmed visually.
- Interior generally: Recently painted but walls/ceilings have imperfections, scuffs, cracks. Some electrical outlets, covers, switches missing or mismatched throughout.
What's Still Unknown¶
- Sewer lateral condition — cast iron, corrosion noted, no camera scope done. High priority before offer.
- Full extent of dryrot behind stucco — stucco test drilling (pest item 6) hasn't been done yet.
- Attic — K&T confirmed but full attic inspection not performed.
- Asbestos scope — floor tiles, linoleum, duct work not tested. Highly likely given 1930 construction.
- All lower-level improvements are almost certainly unpermitted — 3R shows zero permits except 1930 new construction and 2006 reroofing.
- What's under the fresh paint — both home inspector and agent flagged this explicitly.
- CLUE report — seller doesn't know about insurance claims.
Lower Level Strategy¶
Decision: demo back to permitted garage-only state. The entire lower level (laundry, water closet, storage) is unpermitted, lacks code ceiling height, and has extensive rot, asbestos-suspect flooring, and a hole in the laundry floor. Rather than restoring or legalizing, the plan is to strip it back to its original 1930 garage configuration. This eliminates the legalization liability, removes the rot scope, and simplifies the project significantly.
- Replaces the $15K pest item 1 restore estimate with a demo + haul-off (~$3–5K + asbestos abatement TBD)
- Basement bathrooms, laundry hookups, and lower-level finishes are all out of scope
- Garage remains functional
Total Repair Estimate¶
| Category | Low | High |
|---|---|---|
| Pest report (ex. item 1 — demo strategy) | $15,625 | $15,625 |
| Lower level demo + haul-off | $3,000 | $5,000 |
| Electrical (rewire + panel + service) | $20,000 | $40,000 |
| Furnace + water heater | $12,500 | $17,500 |
| Kitchen | $30,000 | $60,000 |
| Seismic retrofit | $15,000 | $30,000 |
| Misc (drains, doors, detectors, etc.) | $5,000 | $8,000 |
| Known total | ~$101K | ~$176K |
Excludes: sewer, asbestos abatement, full stucco dryrot scope, any concealed damage.
Offer Strategy¶
Framework: Development Value, Not Repair Discount¶
This is not a broken 2/1 to be discounted for repairs. The garage has good height and size — a permitted build-out yields a 4/2 or 5/2, which is a fundamentally different asset. The right framework is:
Offer ceiling = Finished value − Cost to get there − Risk buffer − Margin
You can exceed the flipper ceiling because you don't need their profit margin. That's your edge.
Step 1 — Finished Value (After Full Build-Out)¶
| Scenario | Finished Config | Est. Value |
|---|---|---|
| Base | 4/2, ~1,600 sq ft, permitted | $1.6M–$1.75M |
| Upside | 5/2, ~1,800 sq ft, permitted | $1.75M–$1.9M |
Based on Miraloma Park median ~$1,030/sq ft and recent 3/2 sales at $2.2M–$2.3M at larger sq ft. Treat $1.7M as the working midpoint.
Step 2 — Cost to Get There (Excluding Purchase Price)¶
| Item | Low | High |
|---|---|---|
| Demo lower level + haul-off | $3K | $5K |
| Asbestos abatement (floor tiles, linoleum, duct) | $15K | $40K |
| Garage build-out (2–3 bed + bath, permitted) | $150K | $220K |
| Electrical — full rewire + panel + service | $20K | $40K |
| Seismic retrofit | $15K | $30K |
| Furnace + water heater | $12K | $17K |
| Kitchen | $30K | $60K |
| Pest (ex. item 1) | $15K | $15K |
| Misc | $5K | $8K |
| Total build cost | ~$265K | ~$435K |
Working estimate: ~$350K midpoint
Step 3 — Risk Buffer¶
Several unknowns remain open. Budget $75K–$100K contingency: - Sewer lateral (cast iron, no scope) — could be $15K–$50K - Full stucco dryrot extent — unknown - Concealed damage under fresh paint - Asbestos scope may expand
Step 4 — Flipper Ceiling (What a Competitor Will Pay)¶
A flipper needs ~20–25% margin on finished value:
| Low | High | |
|---|---|---|
| Finished value | $1.6M | $1.9M |
| minus build cost | −$350K | −$350K |
| minus risk buffer | −$100K | −$75K |
| minus flipper margin (22%) | −$352K | −$418K |
| Flipper max offer | ~$800K | ~$1.06M |
Flipper ceiling: roughly $900K–$1.05M.
Step 5 — Owner-Occupant Ceiling (No Margin Required)¶
You're living here and building equity — no profit margin needed:
| Low | High | |
|---|---|---|
| Finished value | $1.6M | $1.9M |
| minus build cost | −$350K | −$350K |
| minus risk buffer | −$100K | −$75K |
| Your rational ceiling | ~$1.15M | ~$1.475M |
Owner-occupant ceiling: $1.15M–$1.4M. You can bid above every flipper in the room and still come out ahead — as long as the build-out executes and the finished value holds.
Before Writing an Offer¶
- Sewer scope — biggest single unknown; must do before committing above $1.1M
- Electrician walk-through — get a firm rewire + service upgrade quote
- Garage build-out estimate — the $150K–$220K range is wide; narrow it with a contractor
Seller Context¶
Seller floor ~$820K–$850K (mortgage payoff + closing costs). They have room but won't give it away — the agent knows the upside exists.