I am just like you, . I am a bay area native and own 8 rental properties across 3 states right now. the reason why your sister thinks your crazy is most people who aren't investors look at a primary residence as an asset. Where we investors think of it as a liability. That's why it doesn't make sense to put down $200k here and still end up with a mortgage that costs the same as your current rent, when you could put that same $200k into investments, and make more in cashflow than you pay in rent now. I don't own my own residence either, for this very reason. However, depending on how big you are trying to take this investment process, it does stand to reason that at some point, when you are financially independent, you may want to eventually buy a home, for some sound reasons.
1. Your mortgage will eventually become smaller, but your rent is likely to go up.
2. Tax benefits, especially when you are making even more money.
3. Once paid off, you will have an asset that you can use for lots of things, borrow against for investments, leave to your family after passing away, etc.
4. Once your financially free of the requirement to work, you could move to a more affordable area, like Sacramento, or even out of state and then increase your income by reducing your expenses.
5. Refinancing for cash out, then using those funds to pay off your rentals gives you tax benefits on the funds used, and results in paid off rentals!
hope this helps. :) always happy to talk real estate! Congrats on the purchase and feel free to reach out if you need anything
