So my hubby and I made the tough decision to move back to his home town in MI while continuing his flourishing business remotely here in CA so we can jump into this Real Estate game quicker.

People are being priced out of Portsmouth, and then Dover and are now turning to Somersworth to rent, so HOPEFULLY we will continue to see the town turn around.

I doubt that is what the town planning folks are thinking.

Santa Clara County (March 2016)All homes $855,000 +10.3% 1389 All used homes $980,000 +9.6% 870All condos $675,000 +21% 395Start with more affluent neighborhoods with top schools.Palo Alto $2,472,000 +.09% 26Palo Alto(306) $2,160,000 -13.02% 21 Los Altos $2,640,000 +4.5% 28Los Alto Hills $4,050,000 -5.7% 7 Cupertino $1,590,000 +0.5% 3195129 $1,392,000 -0.2% 2194087 $1,600,000 +6.5% 3195130 $1,303,000 +24% 21Saratoga $2,015,000 -10.3% 27 Los Gatos(032) $1,605,000 +3.5% 27 94040 $1,511,660 +11.2% 1494041 $1,535,000 -7.5% 7 94043 $1,280,000 +4.9% 36 94085 $1,130,000 +29.1% 1394086 $1,112,000 +6.2% 3794089 $1,082,000 +23.2% 11 95050 $856,000 +20.5% 2095051 $972,000 +17.8% 5395054 $951,000 +10.6% 2095008 $1,010,000 +13.1% 31 95120 $1,460,000 +12.7% 31 Central San Jose The following is in line with earlier report where the housing is so high, affordability is an issue home buyers need to move further away and currently Central San Jose enjoyed being one of the most desirable neighborhoods.95117 $1,062,000 +26.4% 1695124 $1,010,000 +7.2% 4795125 $ 998,000 -.02% 7095126 $754,000 +17.6% 2295128 $828,000 +10% 25North San Jose and Milpitas95131 $831,500 +12.4% 4095132 $842,500 +12.3% 2695133 $692,000 +2.2% 2295035 $795,000 +4.9% 55 Refer to North San Jose home prices 2016 Downtown or near San Jose town center95110 $492,500 -4.4% 2495111 $575,000 +3.6% 24 95112 $617,000 +2.8% 2995116 $477,250 +12% 24 95122 $477,500 +10.6% 28 Refer to San Jose downtown home prices 2016 Q1Evergreen neighborhood ( San Jose)95121 $757,000 +19.5% 2695148 $755,000 +5.6% 3395135 $1,120,000 +4.7% 2595138 $1,272,000 +7.8% 21South San Jose neighborhoods95136 $727,500 +4.1% 3495123 $743,000 +16.1% 5395119 $775,000 +5% 1495139 $726,666 +7.8% 4 As people can not find quality homes they go further to South Santa Clara County.

I also live here and work here and in surrounding towns.

If you dont mind me asking, which area of town did you buy your property and why did you choose that area of town?

If you're looking for better neighborhoods griffith/highland/dyer and a few more surrounding towns you could find 1% deals on the MLS,  but if you want better returns you'll have to find off market deals, from what I've seen at least.

I am thinking we would use the equity to put 5% down on a slightly bigger family house for us (with a basement apartment), and then use the vast majority to put 20% down on a 4-plex in a less expensive town within an hour of us.

I do home inspections here in town and in the local area; give a yell via email, phone, or PM if you'd like to touch base or have any questions I can help with. 

If you haven't yet you may want to set up key word alerts on the towns and zip codes your interested in, as well as listing specific towns/zip codes when asking for help.