Best Area to start in the Bay Area

[Alexis Glenn]

Hi Everyone, I am a aspiring investor -mostly interested in rental properties. I am hoping to make my first purchase in about 6 months using an FHA loan on a multifamily property. However, I recently moved to the Bay Area, and was wondering if anyone could give me any advice on what neighborhoods I should be looking at? I currently reside in Richmond and work in San Francisco, so I was thinking it should be about 45 minutes (give or take 10 minutes) outside the city. Also, if there's any chance you live in the Bay Area, let's go grab a cup of coffee (on me) and chat about Real Estate sometime, I would really like to learn about my new neighborhood. Thanks for letting me pick your brain!

-Alexis

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@Alexis Glenn @Leslie Pappas

Don't let people tell you that "now is not the time to buy" in the Bay Area or that there are only X types of investors. These people usually own very little real estate or have something to sell you (their advice, a turnkey in Kansas City, or a "free" seminar)

I own 19 units in Oakland and have bought them all in the last 2 years. I average $500/unit in cash flow (each 4 unit building gives me between $2000-3000/month in cash flow after paying mortgage, taxes, insurance, maintenance, utilities, cap-ex reserve). One I bought with 3% down, the others with 10-25% down. 

It is tough finding these types of properties, but believe me, they are out there. Most of the  people who post on here stating there are no deals in the Bay Area just aren't trying hard enough. They are lazy and blame the world for their problems. 

The Bay Area is the best place to invest - incredible appreciation, skyrocketing rents, and if you look hard enough, cash flow. 

Since you live in Richmond, I suggest you start there. Buy a 4 unit with FHA financing, live in 1 unit, and get market rents on the rest. Act as if you were still renting - whatever you were paying in rent, make sure you save that money. In 2 years, you should have a solid down payment to buy your 2nd property.

Good luck to you.