Why appreciation matters in the SF/Bay Area

[Amit M.]

check out this interpretation of the case-shiller index over the last 30 years. Basically several huge, long run ups, and a few short, minor corrections. Tricky and challenging to get in, but this is how you make the big bucks folks!

http://thefrontsteps.com/2014/06/26/case-shiller-new-jump-in-bay-area-home-prices/

[Jay Hinrichs]

There is no winning the cash flow mid west debate and the SF Bay area appreciation game.

Unless you have lots of cash and credit so you can buy 20 to 50 homes in the MId west and manage them like a hawk,,, One or two homes in SF will out perform those in the long run over time... Everyone wants to live on the peninsula... Not everyone wants to live in KC or Indy... JOBS JOBS JOBS and more JOBS  buying power smart people.. it all happens there.... Were else could a painter make a million bucks painting a mural at company headquarters than at Google.. Not going to happen at Angies list in INDY.

The problem most investors get when they think they need to buy a rental or two and they venture out of state.. Is that so many of them end up making little or no cash flow because they just don't understand how dog gone tough those rental markets are.. And if they bought through a marketing company they paid far more than real value they can never sell without a big loss.. I know I  have been there done that.

If you go mid west or east coast you need to find the wholesaler yourself.. and get the true deal.. not a west coast marketer like we see here on BP...

And if CA is too expensive look at Vegas and PHX.. closer and better plays in my mind.

Again personal bias

All I know is I owned 4 primary residence in the SF bay area from 1979 to 2001.. and I enjoyed when I sold each of them individually over 7 figure profit in total .. No way I could have done that in the mid west.. Only in the very top echelon markets of the big cities no way one could do that in any of the So called cash flow markets.