Invest in Bay Area California? Just starting Out

[Adriana V Alvarado]

Hi everyone, I am just starting out in real estate investing. I would like to know what makes a good deal in the Bay Area, California (like in SF where I will be working) and how much money do I need to save to make the deal worthwhile? Should I start with a condo (about $400K for a studio/one bedroom) since that would be less than a single family home (800K+)? Even with house hacking with a lower down payment (which I am not sure would work if I get a studio size condo), I would still need to pay more out of pocket than what I would pay renting (I can get rent by splitting a studio with a friend for about $1200/month). Has anyone bought an investment property in the California Bay Area recently that could help strategize any ideas on how to move forward? Thank you!

[Jake Andronico]

@Adriana V Alvarado

Welcome to BP! You're in the right spot. I grew up north of San Francisco and moved to live and invest in Reno, NV, where I've house hacked twice. 

It's completely changed my life. 

With house hacking, there is a simple rule in my opinion: The more uncomfortable you're willing to live, the better the numbers can work, the more comfortable you need to live, the less the numbers will work. 

The more money you save, the lower your monthly payment because the more you can put down. 

But, you also have to weigh the time it's taking you to save, the market is (likely) going up. Each market is different, and SF is very unique. 

I would HIGHLY recommend discussing w/ a RE attorney and getting familiar with the tenant/landlord laws in SF.