I suppose if you go to the outer fringe areas, MAYBE. 

Consider these following neighborhoods...but at the same time, there are a lot of macro economic factors that could derail their status...also my biggest advice is to always plan conservatively on your ARV and Comps:- Port Richmond - Kensington - Mantua - Fishtown (almost saturated, hard to find deals)Fringe Up + Coming Neighborhoods:- South South Philly- Strawberry Mansion- Norristown (suburb)Again I would stress it is so important to look at every property on a case by case basis...you make the majority of your money with your purchase price and reverse engineering the after repair value. 

Unlicensed brokers, acting as fringe operators skirting the laws have nothing to lose.

I don't think anyone denies that it's really expensive to live in the Bay area, if you want to live someplace decent, but it's not impossible and not at the outlier fringes claimed by the OP. 

In your area, there are houses in residential areas with business concerns, these are generally in fringe areas, or zoning buffer areas and they have obtained a variance. 

Several items to your goals to consider;* Look at the Fringe Markets, hyped neighborhoods investors are overpaying.* Know what your buy in and prequalification is before placing properties under contract for rehab construction.

Unlicensed brokers, acting as fringe operators skirting the laws have nothing to lose.

Unlicensed brokers, acting as fringe operators skirting the laws have nothing to lose.

I suggest looking at some the areas that are on the "fringe".  

See if he'll just provide the financial support and then hope he catches the "fever" from just tracking the progress and being involved on the fringe.