Most of those who say investing in CA or San diego is a speculation or appreciation only play have more than likely never invested here. 

Would love to hear any (speculative) thoughts. 

I don't think I have a solid understanding of how to speculate appreciation in the real estate market.

As such, it is a speculative investment that has no guarantees. 

I guess the GFC created that tag line.. for me personally I want to buy at one price and sell at a greater price.. if i cant then why buy it.. even if its negative cash flow.as a land developer speculator.. we are all about negative cash flow.. its the basis of our business.. but then when we hit it right we make some nice profits that exceed anything that could be made on pure cash flow with the same dollars invested and over a given time period thats why one simply has to look at IRR to get a true picture not just cash flow

So much for no cash flow in the Bay Area and speculation, blah blah blah.Another friend bought an 8-unit building in Oakland for $1.25M late last year.

But let's call it what it is....speculation.

What you're doing is called speculating (aka gambling) not investing...Unless this is a lakefront/beachfront property or has something amazing going for it - it makes a bad investment (just like 95% of houses out there) 

Both are "speculative" and based on appreciation. 

I love speculating and trying to anticipate where it goes.