Noob from the Bay Area

[J Allen]

Howdy, I'm J. Moved to Redwood City, CA from Auburn, AL to accept a new gig at an early-stage startup. I design mobile apps. 

I own our old family house and a few acres of land in Alabama (thanks to my dad). The house needs a bit of work and it's located it a small rural town.

Pretty new to real estate. It's been suggested that I look in Hayward and Stockton for deals. Looking to close at least one deal this year. 

[Jerome Kaidor]

Hayward is pretty good.  It has rent control, but it's not too bad.  5% a year.  Prices are high right now.  I am seeing duplexes in the $500-$600K range.  But rents are also high.  You have to run the numbers.  Hayward has bad schools, which makes it less desirable, but the pressure from the peninsula is so high right now that it almost doesn't matter.  The last vacancy I had in Hayward, I didn't even have to put an ad on craigslist!  You have to screen carefully in Hayward, because it has "just cause eviction".

Stockton is easier to get into, but you have to be VERY careful of the neighborhood.  The Valley gets murderously hot in the summer, so tends to have a lower class of tenants.  People who can't afford the Bay Area.  You need to go to Stockton and take a long look at the neighborhood.  Look for boarded up houses, tough dudes hanging out at street corners, homeless people etc etc.  Stockton is coming up in the world right now because of pressure from the Bay Area.  

I am a retired software engineer.  I own an apartment building in Hayward and a complex in Stockton....