Palo Alto: Double Trouble B&B Sisters

In a hot market like Palo Alto, it’s unusual for houses to languish on the market for too long. That’s what made me wonder why the two sister houses at 705 Cowper (above) and 711 Cowper (below) have not sold in over 100 days.

Palo Alto denizens know of these turn-of-the-century houses, which used to be connected by a bridge, as “Cowper Inn,” a popular bed-and-breakfast establishment since 1986.

Though the dark shingled exteriors give the impression that the houses were built at the same time, inside they have distinctly different architectural styles. The one on the corner (#705) was built in 1896 and has an Arts and Crafts feel with a box-beamed ceiling, wainscoting, and a clinker brick fireplace. The other (#711) is an 1893 Queen Anne Victorian with a Rapunzel tower, dentil moldings, and lots of flowery Victorian wallpapers.

While these are lovely restorations, they are double trouble for anyone wanting to make a quick sale. First, it doesn’t make economic sense to keep these as B&B’s. As a pure business proposition, the high purchase price and property taxes would make a positive cash situation flow nearly impossible to achieve. Realizing this, the owners have just completed the process of unmerging these properties, so that they can be sold individually. But because the two properties have been optimized for commercial purposes, with a shared driveway and backyards essentially turned into parking lots, they’re not optimal for single families.

But there are a few instances where these could be the perfect housing solution for certain buyers. Small business owners could ditch their high rent offices and create a work-live situation that would ultimately save them money. There are many tax advantages to being able to write off a percentage of your utilities and property taxes under the banner of “Business Use of the Home.” #711 has a separate living unit with a kitchen above the garage, and it would be the ideal space for a lawyer, therapist, or graphic designer. #705 has a second unit with a separate side entrance, and it could be used in the same way.

These sister houses could also provide a nice family compound situation, where lots of rooms are needed, but where two distinct structures provide needed privacy between two branches of a family. For example, this might be a good alternative for housing ailing parents who might not be able to maintain their own home and who might need to be close to family.

STATS
Location: 705 Cowper St, Palo Alto
Price: $2,599,000
BR: 5, BA 4
Sq. Ft.: 4,280
Lot Size:
MLS: #669294

Location: 711 Cowper St, Palo Alto
Price: $2,650,000
BR: 6, BA 4
Sq. Ft.: 3,070
Lot Size:
MLS: # 669293