Average sales price SF bay Area 936k ??

[Jay Hinrichs]

I saw a TV show talking about the average sales price in the Bay area at 936k  along with some tear downs in Freemont selling for 1.1 to 1.3  it was crazy even for someone like me who bought their first home in the late 70s in Milpitas for 79k and it was a new construction Shapel home  LOL.

So I have to think back to E. Palo Alto and in those same years I was buying foreclosures there for 12 to 20k and flipping them making 5k a home and thought I was the smartest guy on the planet.. 

Now I have started to buy in Richmond I cant for the life of me understand why there is not more talk about Richmond were you can buy at 1/3 the market value of the rest of the bay area and it can be re gentrified and fixed up.. Just like E PA and parts of Oakland etc.

with the new Ferry the proximity to jobs  Seems like a no brainer to get ahead of the curve or the herd as it were ?   big money is made in path of progress ??? at least that's my thinking... anyone agree or you think I am nuts.

[Ori Skloot]

I don't see many answers from people who actually own property in Richmond.  I own both MFH and SFD in the Iron Triangle and North Richmond areas.  These are among the worst areas of Richmond and if you listen to some of the posters, some of the most dangerous place in the world.  I've spent a lot of time in these area over the past 5 years, and like many places in the Bay Area they have changed a lot.  5 years ago I wouldn't dare walk alone in these areas, now I'm rehabbing a house in a "bad" part of Richmond and it's a completely different feeling.  There is an open park across the street where they have community gatherings and salsa dance classes.  Kids are out in the streets riding bicycles.  People pass you in the street and say hello.  The folks who avoid Richmond at all costs and point to statistics and news clippings probably haven't spent much time in Richmond lately.   

Richmond has many, many things going for it that is bringing gentrification: proximity to a diverse pool of jobs (and not dependent on tech), infrastructure going in (Richmond ferry terminal), non-profits building affordable-housing (the good kind), old HUD and Richmond Housing Authority properties are in the long-process of being torn-down and sold off so that ugly lots and abandoned houses will eventually be revitalized.

I think @Jay Hinrichs you've got a great play.  I think Richmond is going to have a similar trend as West Oakland (which by the way feels as safe to me as most parts of Richmond).  You will probably be sitting on some of those North Richmond lots for a while, but if you are finding lots in South/East Richmond I think they have already gained a lot of value over the past few years.  Anyone looking to buy in the Bay Area for solid cash flow and good appreciation should look at Richmond.