Buying a home in the bay or reinvesting?

[Kevin Lam]

My family lives in the bay area and we are making stable income of 200-300K a year. My strategy for 2021 was to keep renting and remote invest in other states and so far I've accumulated 4 lower priced properties in OKC and Pittsburgh. The end game is to settle in the bay, but I'm on the crossroads on what should do going forward. 

My salary has increased by 10-20% yearly and the remote properties are making some money slowly however, it seems the properties in the bay keep rising at astronomical rates. My biggest concern is being priced out of the bay in 5-10 years since supply is only decreasing. I am considering pausing my investments and buying a home instead for 1.4M to 1.6M, but I also understand that I will trap myself with a big mortgage monthly and make it difficult to reinvest. Assuming my salary will continue to increase over time by at least 5-10% each year, what is the wiser decision? Continue to rent and reinvest or buy? Any feedback appreciated <3 

[Brian Garlington]

@Kevin Lam   Years ago I was in your position.  First things first. Do not "assume" your salary will increase 5-10% per year, no matter how good you are at your profession. I saw many extremely talented people face salary decreases or go jobless in the last two years. I'm sure you have as well. Second, 75% of your gross rental income you receive from your properties "should" also count as your income so that ideally would help if you purchased properly. Lots of people get surprised when buying lower priced rentals in the south and the midwest when they do their taxes and those "on paper numbers" are not reality when the banks look at them. 

Remember The Axiom........."Live where you want, invest where you make the most profits".