San Francisco Bay Area Real Estate Correction

[Thomas Seay]

So how much longer can this boom continue around here?  I live in Palo Alto, where I have my main residence.  I own rental properties in San Mateo, Foster City and East Palo Alto.  The one in East Palo Alto I only purchased a couple of months ago, and already I am sure it has appreciated by 60K, if not more.

I am looking to purchase more real estate but there are problems.  Right now I am maxed out in terms of liquid cash.  I have a LOT of equity on my houses, but, as many of you know, around here you've got a lot of deep pockets (and some of it dirty overseas money) that shows up with a suitcase of cash and pays straight out (beating out those who have to acquire loans).  

The other problems is I am just wondering how much longer this boom can continue.  Am I going to get caught holding the hot potato? :)

Given the above two issues, what do you think?  Should I look outside of the San Francisco Bay Area to invest?  If so, where?