Small Multi-Family market in Bay Area, CA

[Kushal Shah]

Hi All,

I am new investor based in Bay Area CA, looking to invest in small multi-family (Duplex/Triplex). What I am noticing in the Bay Area is most small multi-family is really old construction around 70-80 years old. Do you think its worth investing in these older properties in the Bay Area from resale stand-point? Do people invest in them with particular strategies in mind (development project down the line)? 

Other question - From a rental income stand-point, its not going to cover the mortgage payment entirely since the prices are so high. Is counting on appreciation the only strategy in a market like this, or are there points of view?

Thanks in advance for taking the time to respond.

Best,

Kushal

[Gurbeer Sangha]

Hi Kushal!

Welcome to BP! The Bay Area is a very hard place to have cash flow. Even breaking even is a blessing there. Most investing strategy in the Bay is just appreciation.

If you're interested in appreciation and cash flow, the Central Valley will be a great bet. Especially with all the people that moved from the bay and LA into the valley during COVID. I have been doing really well investing here and I have a few clients from the bay area that I help invest here in the valley. Feel free to reach out if you want help investing here!