I am not concerned about the benefits of a foreign corporation owing a US LLC and thereby not paying estate tax.

Obviously many others also saw the potential in the property.Yeah, SF is one of the cities where foreigners who has their millions park, they don't really care about cash flow, they are betting on appreciation.

A group of private foreign investors approached me and would like to invest on any current and future house flips that I am working on.  

So they might consider, say, an unseasoned, stated income, 630 credit, cashout, foreign national loan at 60-75%.   

Calif domestic migration is net negative but when you add foreign migration it is positive.

I believe they do finance foreign nationals.

I think the real issue is all the foreign investors looking to park capital here.  

The fact that a very  good portion of foreigners purchasing homes in Vancouver is Chinese plays into this narrative.2.  

Greece is actually just a very small reason among a big pile of reasons that people want safe assets like US notes or US property (perceived to be very safe among foreigners) at the moment.  

I think you are confusing recent appreciation, which has been fueled by a tech bubble and unprecedented foreign investment, with long term historical rates of appreciation, which haven't been nearly as good for the Bay Area.This was a study conducted by Zillow in 2010 and eight of the top 20 cities for appreciation were in SoCal, none were in NorCal:  http://www.zillow.com/blog/top-20-best-performing-...Case Shiller also confirms this over the long term by showing that Los Angeles slightly outperformed San Francisco from January 1980 to the bottom of the recent housing bust in Spring 2009.