You said the S.F. area which could be interpreted to be the S.F. Bay Area metropolis of @ 7M people. Strong demand is common in many cities, though the best deals are in the areas hit
hardest by foreclosures, and I doubt they are experiencing the highest demand, or getting the
highest rents. The choice locations have very low vacancy rates, very high rents like Manhattan,
and as noted, if it's in S.F., Berkeley, or Oakland, very strict Rent Control Boards require the
landlord be either well educated on the local laws, or hire a professional who is.
Everyone understands that real estate appreciation is most likely in high demand, high quality
areas. The formula for break even management, often requires a very large down payment to
reduce the monthly expenses. Don't forget those high property taxes. And if you buy a condo for
investment, I think you'll find it far less likely that you see the same sort of appreciation long term
that you would on a non condo property exclusive of the luxury class properties.
For S.F. $700K doesn't buy much in any good neighborhood. And 2-4 unit rental properties are
always in high demand - maybe you would benefit from further reseach?
I grew up in San Francisco and own a few investment properties myself, one of which is in San Francisco. Currently, I live in Santa Clara.
My number one goal in owning an investment property is that the rental cover the mortgage. This, however, depends greatly on how much of a down payment you have. The other goal I look for is a personal attachment to the property itself or area I am buying in. My duplex in Hawaii, as an example, is only minutes to the beach, downtown, Waikiki, etc. Basically, it is near everything, or as you put it, in a high demand area.
There are too many variables to put in this forum, but if you drop me an email we can talk real estate and see what properties are available out there that might peak your interest.
I'd be happy to help.
I know several properties that fit your criteria.
Please contact me to discuss.
Zephyr Real Estate
I was a real estate attorney and practiced in San Francisco, so my clients benefit from my legal experience as an attorney and expertise in negotiating, structuring, and closing real estate transactions. I am also a real estate investor and have managed over hundreds of rental units for investors.
Please contact me at your convenience:
Wayne J. Chi, Esq.
Zephyr Real Estate
Lance King/Owner-Managing Broker