~$400K good cash flow properties in the Bay Area

[Peter Yang]

Hi folks, I'm looking to purchase my first investment property in the Bay Area. Looking for positive rental cash flow for about $400K purchase price.

I know that's a tough ask given the inflated prices in this market, but having gone through the forums it looks it's still possible to find properties with good value in places like Richmond, Hayward, etc. 

Any tips to get started or areas to look into are welcome!

[Robert Marston]

If I do a straight up "Active Residential Income" search with a max of $425k I see 15 listed, almost all of which are duplexes in Oakland or Richmond that appear in need of extensive maintenance! Got a couple in Antioch too. Most would probably need to be cash deals and even state as much in the listings. 

East Oakland is a fascinating neighborhood, much like Richmond, these neighborhoods have not been overrun with big amounts of Bay Area Money, or at least yet. If you have the stomach for buying a property that needs some(much) attentive care and the patience to deal with a changing environment you might find some nice long-term wealth investing in these cities. If West Oakland is any indicator of the growth we can expect in East Oakland properties should appreciate well (Ah! I have to say though, investing with a big expectation on property appreciation is a gamble! Be safe with your monies!) 

If you choose to invest in these regions expect to bring your properties fully up to code if they are not already. The fire in Oakland shook the box and now code violations will be synched up to limit liabilities going forward(My opinion). Closing costs are high here too as point of sale requirements state Sewer Lateral must be in good order and auto gas valves must be present.(there is a small part of unincorporated Richmond that is excluded from this) High Transfer taxes in Oakland and you have to pay a city tax on your rental incomes($89 once then $13.95/$1,000 each year). Now, most of these closing costs are negotiable however even 50% of this could be more than 100% of costs in regions with less point of sale requirements. Just more things to consider when looking at the bottom line!

I'd be happy to discuss East Bay investments with you more if you'd like! Let us know of all your questions! =)