Now in terms of investment to lease or re-sale, get a house or better yet, a multi-family like Duplex, tri-plex but not around Berryessa.. expensive your ROI will not be good. My Sister bought 2 duplex in east san jose, for $320k with 20% down last year, she is positive $520.00 every month on each property.
My suggestion, if you want to live in it and your single or just starting a Family, go to KB in Milpitas, they have great deals there, I know we just sold one last month, plus free upgrades.
So what you're waiting for go buy, a lot of insentives if your 1st time home buyer:
$8000 from Obama stimulus
$10,000 from State of California, because you are buying a brand new home from a developer
up to $1500 per month for 6 month insurance from California Association of Realtor if you use a Realtor to represent you with that transaction!!! They call it Mortgage protection Plan
The major differential of the higher priced townhomes in Milpitas and the lower priced single family homes in North Valley would be age and condition. Many homes in Berryessa were built in the late 1950s into the mid-1960s. Homes that are 50+ years old could experience major needs like new piping and plumbing, electric and heating system overhauls, new roofs and new windows. Baths and kitchens may also need updating. If you can find a well-priced home that is upgraded sufficiently, my recommendation would be to stick with the single family home if it fits your requirements.
If you are drawn to "plug and play" where you buy the newer townhome and put a "for rent" sign out a week after taking ownership, then it may work better for you to purchase a townhome.
All of these options presently carry some risk because our market in Milpitas and North Valley is still declining. Each month we are seeing more short sales and foreclosures drive down the closed sale prices.
My own home has gone from $700K to about $500K value in North Valley in the last year. Ouch! And it is in great schools.
I would be interested in sending you updates when new townhomes and single family residences come on the market in your zip codes of choice, if you are interested in this service!
Erica M Nelson