Where would you invest in Bay Area today?

I started too many topic around primary home, but let’s start one for investment.

TODAY, if you were to buy in Bay Area that can give you cashflow, where would you buy it? Yes, we can talk about Condo to SFH to Duplex to 4-Plex. Or we all agree that BA is just appreciation play and we need to get out of BA to get cashflow?

Give me some example with CAP rate.

Does SF still has it with these vacant units:

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I think the Berryessa area of SJ has more room to grow. The prices are still pretty low for the rating of the schools, and BART is going to serve the area. The schools are only going to improve as more college educated families move there to commute to SF and N SJ. There’s not many spots that are a pretty good commute to SF and N SJ at the same time.

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Almost all multiplexes are bid by high cash down offer. Recently, I lost a bid with some cash offers. What I know they had 7 offers around 1.5M level. Yet to see the truth when it is closed !

This is a live one, rent one duplex, but already redfin hot home

second one is

This is appx $2000 to $2200 rent

What zip code is the Berryessa area?

95131, 95132, 95133 areas.

Nothing in the South Bay (or SF, or the Peninsula) can give you positive cash flow with 25% down, which is the minimum downpayment for an investment property. Not a single house, condo, or multiplex.

To get to positive cash flow, you will need to look to the East Bay or North Bay. Condos in Solano County are still a no brainer cash cow. Condos and houses in East Contra Costa can still yield slight positive cash flow. Grab them while you still can!


Does it take a long time for schools to improve? For e.g. 94089 schools have not improved for many many years.

I see 45% or 50% down payment gives break even in south bay.

Here is also a better ROI at far south


This is SFH, and can get $1200 to $1500 rent

10-20 years. Depends on speed of the demographic shift. If you’re buying a rental to hold long-term, then I’d use that approach. It’s not great for a primary residence, since most people will want to use the schools faster than that.


Yea, that was my main issue with BA right now. I wanted to mix in some cash flow (doesn’t need to be too much) but enough and depreciation will make sure I don’t have to pay tax on that cash flow.

@wuqijun, do you mind sharing some of the listing information even if it is recent sale? Since I don’t know the area well enough, I wanted to make sure I can do homework based off your input.

That’s crazy. With $7000/month Gross and some common expense since it is 4-plex, I feel like 1.5M is too much to pay. And same thing for that Sunnyvale Duplex. I don’t want to force a cashflow with >50% down, I think 30% down seems reasonable enough to get some leverage and not stretching thin.

Rent $7000, appx all expenses 33% of rent, balance $4690, then yearly ROI = $56280

Cap rate = 56280*100/1,500,000 = 3.75%

My bid was 1.5M (with 25% down) and I lost it, yet to see what is the final price !







Any idea how much this will rent? Looks to me lowest in bay area.

It says “income restriction guidelines, must be owner occupied” ?

“Must be owner occupied”, This is mainly for loan based buyers. This shows lot of investors, more than 50%, bought that HOA condos !

With this price, if I were to buy (which I am not going to do now), I would provide full cash offer. There is no restrictions for full cash investor to buy.

Just searched, The rent ranges between $2200 and $2500 for one bed room !!

The cap rate works around 5.83%, Good return

Income restriction = below market rate unit. That’s why it’s so cheap. You have to earn below a certain income level to qualify to buy.

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That they specifically say either BMR or below market rate.

Owner must occupy mostly enforced by HOA as lenders may not provide finance/refinance if more than 50% condos are rented.

Come on guys, if something says “income restriction” and “must be owner occupied”, you know it’s cheap for a reason. Why even try to find a loophole and turn it into an investment property? It will not work!!!

Owner occupancy is mostly enforced by the HOA and they will check on you…

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Why/how would HOA have income restrictions on buying a unit? It’s BMR. They likely don’t want to directly say BMR, since it can hurt the value of the whole building.

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