Purchase a Home in the Bay Area or Invest Out-of-State?!

[Krystin Aversa]

Hi BP Members!

I am currently in the SF Bay Area and ready to begin my real estate investing journey. I had initially began pursuing a property to house hack in the Bay Area through a realtor here, however the properties available within the FHA loan limits (below 1,053,000 for a duplex and 1,272,750 for a triplex) are in C-class neighborhoods with moderate crime rankings and very poor school rankings. Safety is a non-negotiable, so I am trying to pivot and explore different strategies.

My realtor recommended instead purchasing a townhome or condo with a mortgage that is equal to or less than what I am currently paying in rent; this way, the money I am paying towards rent is at least going towards an asset. My concern is that this feels less like an investment and simply a property purchase. Another strategy we discussed was also buying a home that I could force appreciation into.

And my other option would be to just continue renting here and take my saved capital out of state! With so many approaches and options on the table, I would greatly appreciate any reccomendations and advice!