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Updated 10 months ago, 03/07/2024
Bay Area and NorCal Investors - thoughts on Class A, B, C and D areas
California investors, what are your thoughts about my ratings below? Do you look at class of neighborhoods when you invested or looking to buy now? What other factors do you consider?
Also interested from hearing from those who invest in Sacramento and other areas. I'm trying to help out other CA investors (I still think buying locally is better than an inexpensive property OOS where you can't check up on the property)
I don't know the Peninsula well but expensive Palo Alto, Los Gatos, Cupertino would be Class A to me. I wouldn't consider Brentwood and Oakley to be Bay Area but I guess it's becoming so and lots of people are moving up to Stockton.
I have Class A and Class C (currently huge headaches) in Indianapolis. I probably would have been better off buying Class C in Oakland or Richmond than in Indy (since CA appreciates more than Midwest) but pro-tenant laws here make me hesitant and it's still expensive. My Bay Area properties are in a good neighborhood. My Class A here and in Indy were acquired pre-2013 so not in this current market.
For me a quick guide, is I look at school rankings, easily found on Zillow if you type in a home address and what's surrounding the area as far as types of businesses.
East Bay (it can be neighborhood by neighborhood and street by street)
Class A: Orinda, Lafayette, Moraga, Walnut Creek, San Ramon, Danville, Dublin, Pleasanton, maybe parts of Pleasant Hill and Concord, parts of Pinole?, parts of Berkeley, Oakland Hills?, Piedmont?,
Class B: some parts of Concord, parts of Hayward, St. Leandro, El Cerrito, Pinole, parts of Berkeley?, parts of Oakland?, nicer parts of Antioch and Pittsburg/Bay Point?
Class C: rougher parts of Oakland and Richmond, Hayward, Antioch, Pittsburg
Class D: the worst parts of Oakland and Richmond