Thanks @J. Martin .
I have been investing in East Bay since 2008, specifically Hayward. Here are my thoughts:
1. I am in south bay and don't know too much about east bay EXCEPT Hayward. Needless to say - I love Hayward. It is in the center of bay area and commute friendly. And it is much lesser expensive than south bay or peninsula or some of the east bay cities (e.g. Fremont, Union City). And the rents are generally good - so the rent to buy ratio (very important metric for investing anywhere) is better than most cities. I am sure there must be other towns with similar rent-to-buy ratio, but I am not aware of those. Of course, Hayward also has some rough areas that I would avoid.
2. I am sure BP has detailed guides on calculating cash flow. For the first property purchase, it is less critical in my mind to get it perfectly right compared to using the "same method" to compare all of your prospects. And ensuring to not miss at least any of these: property taxes, insurance and HOA dues. Other expenses like property management, mortgage, vacancy and repairs are "generally" don't vary too much between one property and the other (as a % of rent or purchase price).
3. I don't have much to add except that you focus on the #2 above and the rest is taken care by the market. Don't get hung up on what % the property will appreciate. It is safe to assume that it will appreciate if you hold it for long term.
4. I would suggest to consider 2/2 and 3/2. I have never purchased 1/1. If it is great deal, 1/1 should also be ok - but there is much less supply as well as much less demand for 1/1.
Between Condos/Townhomes and SFR - I don't think you should limit yourself to any single category. Buy wherever numbers make sense and you get a better deal. I have exclusively purchased condos/TH and that is just because there were more deals to be had in those days in that category.
Good luck!
