Investing in LA South Bay or SF Bay Area with $200k

[Tom Henry]

Hi everyone,

I'm hoping to get into real estate investing using the BRRRR method in California.

I have about $200k of my own money saved that I'd be willing to invest (if the deal is right). I live in San Francisco and I grew up in the Los Angeles South Bay, so I would like to invest in/around those areas if possible. I know those areas are very expensive and highly saturated markets which makes finding a deal very difficult. I'm reaching out here to see if anyone has advice for me as a first time investor. 

I currently rent in San Francisco and I can't imagine living there for longer than two more years so I'm hesitant to purchase a place for myself at this time.

I'm open to all suggestions, but ideally hoping to invest in/around the areas I mentioned above.

Thanks in advance for taking the time to respond to my post.

-Tom H

[Lee Ripma]

@Tom Henry

LA and out of state investor here. Originally from the Bay Area but now live in LA. I really like a couple Bay Area markets outside of SF. Hayward and Richmond. If you can get into Richmond now at low price points I think it’ll be like buying in Oakland 15 years ago. So I’d invest in emerging submarkets of the Bay Area. I also like anywhere along the coast, seaside by Monterrey is a great rental market. I think Salinas will also blow up. I really like CA investing. It’s not a cash flow play but there is a lot of upside if you buy in emerging submarkets with rental demand. I’m not suggesting you live in these places, just invest in them. I don’t confuse investing in real estate with living in real estate.