Need advice for buying or not buying 1st home in the Bay Area

[Wendy He]

I am late to the game and just like everyone else, I wish I had purchased property back in 2012 when we first moved here. We currently rent but we prefer to buy and own. Here is my dilemma; I would love to buy in the bay area, especially the San Jose area or Peninsula but the prices are still very high and cash flow sucks. Together with a friend, I have been actively analyzing the individual trend of real estate and population movement in various markets of the US and try to invest with him together (Didn't start yet). We can only front $150k ish for purchasing but if I use it to purchase something in the bay area, all the money is tied up with my home and we will never be able to invest in cashflow properties elsewhere. If we continue renting and use the money for investment in other markets, it is still an inconvenience to not have a home, let alone all those tax benefits of having a mortgage. Not trying to time the market, but I do want to take advantage of this low interest rate and potential volatility around this election.

Here are some facts about us.

1. We are both basic academics with low pay compared to people in the Tech sector in this area. (our pay could increase when we change jobs but due to the high tax and cost of living, it is insignificant)

2. We are would-be first time home owners. We have good credit scores 750+. We have a lot of credit cards but never carry balance. (could be a downside)

3. We live below our means and save as much as we could (Still lives happily, thanks to free travel and hotels from credit card offers). I am good with money and personal finance. (For example, each year a major bank credit card would give us up to $30000 0APR, 0% fee balance transfer offers and in the past I only put the money in CDs or Stock Market indices)

4. I am entrepreneur- and investor-minded and I don't see myself as working 9-5 job for the rest of my life (currently I am).

6. I have knowledge about real estate and investing through books and videos but that is pretty much it.

So the question: to buy or not to buy in the bay area? What to buy? SFH or 3+ room condos/townhomes? It would be nice to rent one unit out.

Your thoughts would be highly appreciated!

[Ryan Landis]

@Wendy He as others have mentioned, the Bay Area is a fun market to be apart of. The issue that a lot of buyers I talk to struggle with is ultimately "pulling the trigger." As @Chris Mason mentioned, the ability to hold here is extremely important. If you can weather the storm (and lets be honest the storm varies greatly by location in the Bay Area), you will be fine. There are thousands of ways to become a millionaire, and many investors in the Bay Area have done it utilizing the same fundamentals as you currently do (i.e. living below your means, etc.)