If you catch these at the pre-foreclosure stage as slow pays or initially in default all the better as the bank has less in collection expense.You can still work out a discount but even buying at the payoff it can be profitable depending on the property value.You can practically force a lender to sell as it can fully indemnify them as a full payoff as demanded, continuing with a foreclosure becomes a rather vengeful act by the bank to punish a borrower, they don't want to go there.

Some Bay Area investors I know are: house hacking, rent by the room, mid-term rentals, STR (depending on your location AirBnbs may not work).

One can be close to a hands off, passive investment depending on a few things.

Depending on the opportunity type and the licenses you have, that will either be pretty hard or really hard. 

I've had 1 tenant stay for 3 years, the others have stayed for a year on average but it depends.

Of course there are other great areas in the Austin MSA depending on your strategy and risk tolerance.Let me know if I can answer any questions or share my thoughts on any other topics.

Depending on your multi-family interest, type of project and timing; I might have some interest, if you're open to that idea. 

A nice but rental quality unit gets 1500-1650 regularly in that area depending on the size and finishes.

Depending on your budget, Cambridge can be a great rental market.

If JC is a must, that's fine you'll do well with appreciation and rent increasing depending on the market with in city.