871 42nd Ave, San Francisco CA 94121¶
List price: $1,295,000
Neighborhood: Outer Richmond (SF District 1)
Type: 2/1 main level + massive unfinished lower level
Main level: 1,365–1,428 sq ft (tax record vs. MLS floor plan — buyer to verify; see sqft note below)
Lower level: Garage 24'2" × 55'5" (~1,342 sqft) + basement + covered hallway (~185 sqft) = ~1,600 sqft potential
Lot: 25' × 120' = 3,000 sq ft (confirmed by title) | Built: 1927
Zoning: RH-2 (two-unit — better than assumed RH-1) | APN: 1685-006L
Agent: Shannon Hughes, Compass | MLS#: 426133303
Sellers: Karyn Sarganis (née Fritz) + Tom Morphopoulos — trustees for Christine Morphopoulos Trust. Prop 13 assessed $290K (2025); taxes $3,458/yr. No mortgage. Trust created Nov 1999; original deed Feb 1985.
Status: Active, 1927 original condition throughout. Listed May 22, 2026. Escrow: Old Republic Title (Janette Marcelo).
Last updated: May 2026 — full disclosure package reviewed (TDS, SFSD, AVID, 4 pest inspections, home inspection, plumbing estimate, energy/water inspection, preliminary title, NHD report)
Visit Notes — Confirmed on Walk¶
Walked the property. Key findings that update the disclosure-based analysis:
| Item | Disclosure concern | What we found |
|---|---|---|
| Substructure damage | CRITICAL — Orkin photos, unknown extent | Accessible garage framing only. No hidden crawl space. Rotted elements visible, replaceable — bounded repair. |
| Standing water (Terminix Feb 2025) | Unknown source, prevented full inspection | Likely refers to garage floor, not a concealed subarea. Not a systemic issue. |
| K&T wiring "throughout" | Full rewire assumed | K&T only in some locations, possibly already de-energized. Electrician to verify before closing. |
| Structural walk priority | SE inspection flagged as critical | Downgraded — damage is accessible, scoped, not catastrophic. |
Net effect on works cost: Structural wildcard shrinks from $25–75K unknown to ~$20–40K bounded repair. Electrical scope reduced from full rewire ($30–50K) to partial removal + 125A→200A upgrade ($10–20K).
Still Open¶
- Sewer scope — 99-year cast iron lateral, unscoped. Must do before committing.
- Garage ceiling height — measure; 7 ft minimum for permitted bedroom.
- Confirm K&T circuits are dead — electrician walk before closing.
- Energy/water work ($2,895 quote) — confirm with agent whether completed pre-listing or buyer's responsibility.
Seller Profile¶
Karyn Sarganis and Tom Morphopoulos are children (or relatives) of Christine Morphopoulos, who appears to have owned since at least 1985. The seller disclosure says: "no renters, there have never been renters." Trust sale, no mortgage. They want to close; they have flexibility on price (their floor is essentially $0 basis after decades of ownership).
The TDS contradiction to note: Seller checked "No" on unpermitted room additions (C4) but "Yes" on structures not in compliance with building codes (C5). This means they believe everything was permitted but some permitted work doesn't meet code — probably the exterior stairs, the lack of fire separation between garage and living spaces, and possibly the panel work (they said they "can't find" the electrical permit but believe power wouldn't have been turned on without it).
The Case For It¶
A renovated 2/1 here is worth ~$1.5M — tight at list. The garage (1,342 sqft confirmed) changes everything. Partially built out, this becomes a 4/2 at ~2,150 sqft worth $1.9–2.1M. Fully built out, a 5/3 at ~2,900 sqft worth $2.3–2.6M. Two sister homes on the same block prove it:
| Sister home | Built | Config after reno | Sold | Date |
|---|---|---|---|---|
| 807 42nd Ave | 1923 | 4/2, 2,166 sqft — open kitchen/living, lower suite + wet bar | $2,475,000 | May 2022 |
| 855 41st Ave | 1923 | 4/3.5, 2,895 sqft — open concept main, 2 bed lower + sauna | $2,865,000 | Feb 2026 |
Zoning RH-2 is a bonus: full two-unit potential (ADU or legal second unit in lower level) which the sister comps don't fully capture. This is better than originally assumed.
Square Footage Note¶
| Source | Sqft | Basis |
|---|---|---|
| MLS listing | 1,428 | Measured by floor plan drafter (Open Homes Photography) |
| CoreLogic / tax record | 1,365 | Assessor auto-fill |
| Difference | 63 sqft | — |
The agent and MLS explicitly say "buyer to investigate." Use 1,365 as the conservative figure for offer math; 1,428 if you trust the floor plan drafter. At $1,000/sqft the difference is ~$63K. Measure during your next visit.
What Has Already Been Done¶
These items reduce the works cost from the raw 1927 condition baseline:
| Item | Done | Cost | Permit |
|---|---|---|---|
| Electrical panel: 125A service drop + grounding | July 2024 | $7,000 | Yes (permits can't be located by seller but power confirmed on) |
| Windows replaced | 2022 | Unknown | Yes |
| Subterranean termite soil treatment (Orkin) | March 2026 | ~$4,571 | No |
| Woodboring beetle heat treatment (Terminix) | Feb 2025 | $5,880 | No |
| Hose bibs replaced + galvanized nipples (Whistle Plumbing) | March 2026 | $1,143 | No |
| Shower drain snaked | April 2026 | Minor | No |
| Utility sink repaired | April 2026 | Minor | No |
Energy/Water Conservation Inspection (City-Wide Insulation, May 6, 2026): Mandatory pre-sale city inspection. Required work quoted at $2,895: attic insulation, hot water pipe insulation, door weatherstripping (2 doors + 3 sweeps), furnace duct plenum wrap, 2 smoke detectors, 1 CO detector, 1 toilet replacement (valve + bowl), 1 faucet aerator. As of May 6, this work is quoted but not confirmed completed — verify with listing agent whether these items have been done.
Important: The panel upgrade (July 2024) went from 30A fuse-based to 125A breakers, but K&T branch wiring throughout the house was NOT replaced. The galvanized water main supply was NOT replaced — Whistle Plumbing noted it is still galvanized steel 1" at the main stack with 130 PSI city pressure (pressure reducing valve recommended). Tub drain has confirmed leak; plumber recommends drain replacement (~10 ft to stack).
Red Flags — Confirmed from Disclosure Package¶
Issues are ranked by severity. "Confirmed" = documented in inspection report; "Assumed" = reasonable inference from age/condition not contradicted by disclosures.
TIER 1 — Structural / Garage Framing (updated after property walk)¶
| Issue | Source | Risk | Status |
|---|---|---|---|
| Rotted framing near gas meter — Orkin photos show blackened, damaged framing | Orkin 2/2026 | Bounded repair — accessible garage framing only. No hidden substructure. | ~$20–40K replacement scope |
| Sheerwall damage at front wall (side door) + hallway behind electrical | Terminix 2/2025 + Orkin 2/2026 | Real but quantifiable. Part of garage framing repair scope. | Include in GC quote |
| Foundation posts: no raised footings, no post/beam connectors | Wellington HI 5/2024 | Seismic risk. Address in retrofit scope. | $30–55K seismic retrofit |
| 3×4 wall studs (substandard) | Wellington HI 5/2024 | Affects shear wall capacity — complicates permits | Noted |
| Fungus damage to mudsills | Wellington HI 5/2024 | Part of seismic retrofit scope | Included above |
| Faulty grade at foundation perimeter | Wellington HI 5/2024 | Ongoing moisture source — fix driveway drainage | $5–15K |
| Standing water in subarea (Feb 2025) | Terminix 2/2025 | Likely garage floor, not a concealed crawl space. Walk confirmed no hidden subarea. | Not a systemic issue |
TIER 2 — Active Pest Infestation¶
| Issue | Source | Status |
|---|---|---|
| Active subterranean termites at garage front wall, side door wall, hallway behind electrical | Wellington 5/2024, Terminix 2/2025, Orkin 2/2026 | Orkin soil treatment March 2026 now in place — monitored, not fully resolved |
| Woodboring beetles active in hallway studs + rear partition wall | Terminix 2/2025, Orkin 2/2026 | Terminix heat treatment 2/2025 ($5,880). Post-treatment status unknown. |
| Rodent evidence in basement | Wellington HI 5/2024 | Standard, addressable |
TIER 3 — Systems¶
| Issue | Source | Est. Replacement Cost |
|---|---|---|
| Knob-and-tube wiring throughout — confirmed mixed K&T + Romex; panel 125A, not 200A | Wellington HI 5/2024 | Full rewire + 200A upgrade: $30–50K |
| Galvanized supply lines — main stack still present at 130 PSI city pressure; PRV needed | Whistle Plumbing 3/2026 + Wellington HI 5/2024 | Full supply replacement + PRV: $20–35K |
| Galvanized waste lines — confirmed throughout | Wellington HI 5/2024 | Full waste replacement: $8–15K |
| Sewer lateral — cast iron, 99 years old, not scoped | Not scoped | $0–20K (scope required) |
| Shower stall — voids in walls, handles broken, visible drain leak | Wellington HI 5/2024 | $8–15K in bath remodel |
| Tub drain leaks — visible leak confirmed | Wellington HI + TDS | Included in bath remodel |
| Laundry basin drain leaks | Wellington HI 5/2024 | Minor |
| Shower door: not tempered glass — safety hazard | Wellington HI 5/2024 | $500–1,500 replacement |
| Water heater: 2007 — 19 years old | Wellington HI 5/2024 | $3–5K |
| No range hood installed | Wellington HI 5/2024 | Part of kitchen remodel |
TIER 4 — Exterior / Roof¶
| Issue | Source | Est. Cost |
|---|---|---|
| Roof flashings deteriorated/damaged — repair or replacement needed | Wellington HI 5/2024 | $5–12K |
| Decorative fascia (Spanish tile): missing shingles — roofer needed | Wellington HI 5/2024 | $3–8K |
| Main roof (flat tar + gravel): serviceable per 2024 inspection; no immediate crisis but 99 years old | Wellington HI 5/2024 | $0–25K if replacement triggered |
| Lightwell roof leaking — causing water stains on garage finished ceilings | TDS | $8–15K |
| Driveway slopes toward garage — ongoing water infiltration into substructure | Wellington HI 5/2024 | $5–15K |
| Bay soffit: no ventilation — conducive to fungus infection | Wellington HI 5/2024 | $2–5K |
| Chimney: no damper, deteriorated cap | Wellington HI 5/2024 | $3–8K |
TIER 5 — Regulatory / Permits¶
| Issue | Source | Est. Cost |
|---|---|---|
| Exterior stairs on property line, no firewalls — likely unpermitted | Wellington HI 5/2024 | $10–20K to legalize or rebuild |
| No fire-rated wall between garage and living spaces — code violation | Wellington HI 5/2024 | $5–15K |
| Asbestos — 1927 construction (floor tiles, duct wrap, pipe insulation likely) | Assumed | $10–25K testing + abatement |
| Lead paint — pre-1978 throughout | Assumed | $5–15K spot treatment |
CLEARED — No Issue Found¶
- No flood zone, no fire hazard zone, not in earthquake fault zone (no fault rupture risk)
- Not in liquefaction zone (county confirmed)
- No environmental contamination near property (clean across all databases: Superfund, RCRA, LUST, SLIC)
- Clean title: no liens, no open deeds of trust, no PACE lien
- Mello-Roos: SF USD CFD 90-1 — currently $0/year (max $43/year, ends 2031). Negligible.
- Not in tsunami zone; not in wildfire zone
Seismic Context¶
The property is mapped in the "Violent" (MMI VIII) ground shaking zone for a M7.8 San Andreas event and "Strong" (MMI VII) for a M7.0 Hayward event. UCERF3 gives a 72% probability of an M6.7+ event in the next 30 years. Combined with the confirmed absence of any seismic upgrades, no raised footings, no post/beam connectors, and subterranean pest damage to structural framing — seismic retrofit is not optional. It is the difference between a building that survives and one that doesn't.
Floor Plan Notes¶
Main level (right side of plan): Classic 1920s railroad layout — narrow right-side corridor runs entry → foyer → WC → bath → bedrooms. Kitchen (9'11" × 14'0") and dining room (14'8" × 12'0") are walled off from each other and from circulation.
Corridor fix: Remove the kitchen/corridor wall during the kitchen remodel. Circulation flows through the open kitchen instead. Add $10–20K to the kitchen scope — no separate demo project needed.
Lower level (left side of plan): Garage (24'2" × 55'5") + basement + laundry + covered hallway (4'8" × 39'4"). "Open To Below" already connects floors. Covered hallway: absorb into build-out rather than demo separately — free sqft.
Build-Out Scenarios¶
| Scenario | Sqft added | Result | Build cost |
|---|---|---|---|
| Partial (front ~30 ft of garage) | ~720 sqft | 4/2, ~2,150 sqft | $200–320K |
| Full garage + hallway | ~1,527 sqft | 5/3, ~2,900 sqft | $400–580K |
| Full lower level | ~1,600 sqft | 5–6/3, ~3,000 sqft | $450–650K |
RH-2 zoning note: Full build-out as a legal second unit (ADU) is potentially possible given RH-2. This unlocks rental income and increases future sale value. Worth exploring with a permit expediter before closing.
Recommended: Partial build-out as primary case. Best cost/sqft ratio, faster permits (9–18 months), keeps rear of lower level as storage/workshop.
Total Works Cost — Updated from Disclosures¶
| Category | Low | High | Notes |
|---|---|---|---|
| Kitchen gut + remodel (incl. corridor wall removal) | $70K | $120K | Unchanged |
| Bathroom remodel (incl. shower stall rebuild, new valve, drain repair, tempered door) | $30K | $55K | Confirmed scope from HI |
| Electrical: full K&T rewire + upgrade to 200A | $30K | $50K | K&T confirmed throughout; 125A → 200A needed for build-out |
| Plumbing: supply + waste + PRV (both galvanized confirmed) | $25K | $50K | Supply main still present; waste lines also galvanized; PRV needed |
| Water heater (2007, near end of life) | $3K | $5K | |
| Seismic: cripple wall + posts/footings/connectors + mudsill | $30K | $55K | No raised footings, no connectors — more work than originally assumed |
| Substructure structural repair (rotted framing, sheerwall damage) | $25K | $75K | BIGGEST WILDCARD. Photos show severe damage. Requires SE inspection before offer. |
| Sewer lateral (cast iron, 99 yrs, unscoped) | $0K | $20K | Scope required |
| Pest remediation (post-treatment repairs, monitoring, residual) | $10K | $25K | Orkin/Terminix work done but ongoing risk |
| Asbestos + lead abatement | $10K | $30K | |
| Fire-rated garage/living wall separation | $5K | $15K | Code violation, must correct |
| Exterior stairs (legalize or rebuild) | $10K | $20K | Likely unpermitted |
| Roof: flashings + fascia repairs | $5K | $15K | Main roof serviceable; flashings and tile fascia work needed |
| Lightwell roof repair | $8K | $15K | Causing substructure water stains |
| Chimney (damper + cap) | $3K | $8K | |
| Driveway re-slope + drain | $5K | $15K | |
| Garage partial build-out (~720 sqft, 2 bed + 1 bath) | $200K | $320K | |
| Architect + permits | $25K | $45K | More complex scope than originally assessed |
| Misc (floors, paint, fixtures, landscaping) | $20K | $40K | |
| TOTAL (partial build-out scenario) | ~$514K | ~$978K | |
| Working midpoint | ~$625–650K |
The substructure structural repair ($25–75K) is the key swing item. The Orkin photos show severely damaged framing that may extend well beyond what is visible. The Terminix standing water finding (Feb 2025) compounds the risk — if water has been pooling in the subarea for an extended period, damage could be far more extensive. Neither the substructure damage nor the standing water issue has been fully characterized.
Offer Strategy¶
Framework: Comp $/sqft × finished sqft − works cost − risk buffer = your ceiling. List price is seller strategy, not market value.
Comp $/sqft (Outer Richmond, renovated SFH, 2019–2026)¶
| Address | Config | Sqft | Sold | Date | $/sqft | Notes |
|---|---|---|---|---|---|---|
| 883 42nd Ave | 4/3.5 | 3,086 | $3,168,000 | Apr 2022 | $1,027 | Same street, same vintage (1927), luxury Art Deco reno |
| 807 42nd Ave | 4/2 | 2,166 | $2,475,000 | May 2022 | $1,143 | Same street, sister home renovated |
| 855 41st Ave | 4/3.5 | 2,895 | $2,865,000 | Feb 2026 | $990 | One block over, gut reno — most recent large reno |
| 714 23rd Ave | 4/1.5 | 2,083 | $2,600,000 | Jan 2026 | $1,248 | Inner Richmond, renovated |
| 851 46th Ave | 3/3 | 1,509 | $1,800,000 | Nov 2025 | $1,193 | Renovated |
| 519 42nd Ave | 2/1 | 1,275 | $1,415,500 | Mar 2025 | $1,110 | Same street, maintained (not renovated) |
Market context: Outer Richmond median March 2026 = $1.9M, up 13.1% YoY. The 2022 comps on 42nd Ave itself were $1,027–$1,143/sqft; adjusted for 13% appreciation, that's ~$1,161–$1,292/sqft in today's market.
Working $/sqft for a renovated product in this submarket: $1,100–$1,300/sqft
$1,500/sqft is at the ceiling for very small, exceptionally finished turnkey homes — not a realistic target for this project.
Ceiling Calculation (updated from disclosures + expanded comps)¶
| Scenario | Finished sqft | × $/sqft | Finished value | − works (mid) | − buffer | Ceiling |
|---|---|---|---|---|---|---|
| 2/1 reno only (no garage) | 1,428 | $1,250 | $1,785K | −$370K | −$60K | ~$1,355K |
| Partial build-out (4/2) | 2,150 | $1,150 | $2,473K | −$600K | −$75K | ~$1,798K |
| Full build-out (5/3) | 2,900 | $1,050 | $3,045K | −$800K | −$100K | ~$2,145K |
2/1 reno works revised mid-estimate (post-walkthrough): kitchen $95K + bath $42K + electrical $15K (partial K&T removal + 125A→200A) + plumbing $37K + water heater $4K + seismic $42K + structural/garage framing $30K + pest residual $17K + asbestos/lead $20K + roof/lightwell/chimney/driveway $38K + stairs/fire-wall $20K + misc $22K + A&P $28K ≈ $410K midpoint.
2/1 reno only ceiling: ~$1,355K — above list price ($1,295K)
The 2/1-only scenario now has margin at ask, given the updated comp set and reduced electrical scope.
Recommended offer range: $1,250,000 – $1,400,000 (base case: partial build-out)
| Offer | Rationale |
|---|---|
| $1,250K | Conservative floor. Appropriate if sewer scope reveals issues or GC walk raises concerns. |
| $1,295–1,350K | Around ask. Defensible on 2/1-only comps alone. Fair entry for the build-out thesis. |
| $1,400K (ceiling) | Appropriate if sewer scope clean, K&T confirmed dead, GC build-out quote in hand. |
Seller profile: Trust sale, no mortgage, Prop 13 basis ~$283K. No urgency. Likely values certainty over price. Structure offer with large earnest money ($100–150K) and flexible close date. These tools are worth $50–100K in negotiation with this type of seller.
Before Offer Checklist — Updated¶
Critical (do before any offer): - [ ] Sewer scope — cast iron lateral, 99 years old. Last major unknown. - [ ] GC walk of garage — confirm ceiling height (min 7 ft for permit), quote garage framing repair + build-out scope - [ ] Electrician verify K&T circuits are dead — confirm de-energized before closing; get 125A→200A upgrade quote - [ ] Pull 3R report — confirm RH-2 zoning, full permit history
Before committing to upper end ($1,400K): - [ ] Plumber walk — supply + waste replacement quote, PRV - [ ] Pest follow-up — Orkin treatment verification, beetle re-inspection status - [ ] Title review — 1928 Agreement (Exception 5 in prelim): party wall or easement? Have title attorney confirm no practical impact.
Structural walk no longer top priority — walked property, rotted framing is in accessible garage only, bounded repair. Standing water finding (Terminix Feb 2025) likely refers to garage floor, not a crawl space.
Finding Sister Homes (Same Floor Plan)¶
This 1927 plan was used repeatedly across the Richmond. To find renovated versions showing what the open layout looks like:
- Redfin — search 94121, SFH, built 1924–1930, sold 2020–2026, sort price descending. Floor plan images in listing photos.
- SF DBI permit portal (dbiweb02.sfdbi.org) — look up 807 42nd Ave permits from ~2019–2021. Original builder name unlocks all sister properties.
- Sanborn Maps — davidrumsey.com or SF Public Library (sfpl.org via ProQuest). 1930s maps show identical building footprints block by block.
- Mirror images — even-numbered side of 42nd Ave (870, 872, 874) likely has the flipped version of the same plan.