Hi all,One of the keys of effective negotiation is to have some way to justify a really low (or high) offer. 

High demand but low supply

I suggest looking for value-add opportunities such as disrepair, low rents, and other signs of poor management.

As you go down the scale of desirability, the price goes down, until you reach the small station, in a bad location, hard to get to, in a low income neighborhood, with environmental compliance issues.  

Interest rates are so low right now that you should be buying as much as you can afford to create cashflow. 

Things where deferred maintenance is 3 to 5 layers of shingles, bad furnaces- you name it.  

Jim, feel free to add us to your connections.My company is a private buyer and private lender on low ARV $ SFR properties throughout the country. 

Should I refinance into the low 3s to increase my cash flow to around 400 a month or should I leave it as is?

My question is if that same strategy can be applied to the Bay Area as cap rates are so low here. 

FHA 203(k) loans are not  available to investors.Rates are going to be slightly higher on renovation loans, but still very reasonable.Homestyle has a rule that the repairs cannot be more than 50% of the as-completed value of the property, so when you're working with these really low priced properties you have to make sure the numbers work.