I do try to find properties that are in areas with stronger potential for appreciation, but I never never never buy solely hoping for appreciation.

At best this property would break-even.San Fransisco has an (overall) average rent-to-value ratio of about 0.4% -- far below what an investor can get in other markets with stronger economics and lower purchase prices.I think eventually you'd find a piece of property with a positive cash-flow, but the length of time you'd have to spend to sift through enough properties to find that "diamond in the rough" would make the effort questionable.Additionally, the very high land cost under those properties carries a high level of exposure and risk for any investor since the first thing to drop when the housing market turns and cycles down are land values.I hope to meet you one of these days Ben. :-)Continued success!

or would you just focus on paying off debt first with the thought process of being able to focus more on real estate investing in the future because your cash position will be a whole lot stronger without consumer debt.

Buying newer homes in nicer neighborhoods gives a much stronger chance for strong appreciation.

Many very successful people have gone broke and come back much stronger than before.I was self employed until I was 38.

If you plan on financing it, say you are going to finance it...if you are going to pay cash, write a cash offer.Remember, you are putting this house under contract so you need to stick with the terms in the contract, not try to make you offer stronger.

That gives you a stronger claim on the property than just a lease, and may (depending on your laws) force the landlord/seller to foreclose if you don't pay.

We get stronger cash flow in Sac and I believe the highest appreciation potential in Sonoma, Solano probably falls somewhere in between.

A land contract is stronger.

Hopefully that made you stronger and smarter!