Is it crazy to think about commercial MF in CA Bay Area in this market?

[Sateesh Kumar]

Hello, 

I am new member to this forum although I have been following the BP platform and the great insights shared by other members here.

I currently own a small investment multifamily (a triplex )but still consider myself noob in the RE space. I was looking to expand my portfolio and started looking for a multifamily upto a 4-plex a realtor brought to my attention a 10-plex over 2.5 million that requires at least a million down payment and for a moment it seemed doable because I have up to 700k equity in my residential but it seemed risky, then I started thinking of not 10 plex why not 5 plex or even 7 plex in the 1.5 mil range? I was initially contemplating buying a single family in the Bay Area which are already over 1.5 mil and it’s not making any financial sense to me, with a commercial multifamily there is at least a possibility of cash flow without speculating appreciation but I am not too sure how to best analyze a multifamily especially in this market,to begin with I would like to ask the experienced members here if I am crazy to even think about commercial MF in CA Bay are in this market?Can I do much better in other markets?Appreciate any guidance you can provide.

Thanks