Bay Area - To Buy a SFR or rent and invest?!

[Nic S.]

Hello Everyone!

My name is Nic and I am brand new to BP and RE investing. I was born and raised in the SF Bay Area. I am at a crossroads in my life and I'm hoping to get your thoughts. 

Situation - My (soon to be) wife and I are first time home buyers. For the past 6+ months we've been tirelessly touring SFR's trying to buy our first home. The entry price in the SF Bay Area (Redwood City > SF) for those familiar with the area is $1M-1.2M (I looked at a 1k sq ft 3/2 in San Mateo today for $1.1M and it needs about $100k of remolding). I discovered BP about two months ago and it's changed my perspective on RE and RE investing.

Buying a SFR and being tied to a $4500-5K mortgage payment seems absurd. Buying in the Bay Area is an appreciation play. If we were to buy in the Bay Area, there would not be much free capital to start investing in duplex/3plex/4plex's. I have two partners that want to start investing out-of-state in MFR's for cash flow.

Should I continue to rent and invest in MFR's or should I buy and live in a SFR? What would you consider when making a decision? Other?

Happy to answer any follow up questions. THANK YOU!