Better use of $300k in SF Bay Area

4 Replies

Hello BP, What is a better use of $300k in the Bay Area?

Option 1: Scour for a rental property with positive cash flow. Hard to do but there is always hope.

Option 2: Invest in adding extra space in primary home. The quotes are for $300 per sq feet in construction costs to add space. Homes in the area are selling for $1000 or more per square feet.

If the idea is to increase net worth option 2 looks better. Not to mention the joy of living in a bigger upgraded home. But that’s just my simple brain thinking. What do the gurus on the forum think?

Hey Sam,

I would suggest investing your current money in out-of-state rental properties, preferably landlord-friendly states. I am also from the SF Bay Area and I can tell you that there is not a great return compared to out-of-state rentals. 

It all depends on what you current appetite is! I would invest and aim to be financially free.

Sam,

I would also suggest investing out of state. It is definitely doable (I'm doing it for many years).

It is not only the price to rent ratio which terrible in Bay Area it is also laws and regulations which are generally tenant friendly...

If you want to learn more about investing out of state feel free to pm.

Sam,

I would also suggest investing out of state. It is definitely doable (I'm doing it for many years).

It is not only the price to rent ratio which terrible in Bay Area it is also laws and regulations which are generally tenant friendly...

If you want to learn more about investing out of state feel free to pm.

@Sam Josh , If you're going to keep your money in the Bay Area, I would only put it in your primary home if you plan to sell right after the renovation. That's how you get the best bang for your buck. Even though you might be improving the value of your house, you're not seeing any return so long as you're occupying/enjoying the space. 

If you just want to enjoy a bigger space that's fine, but don't think of it as an investment decision.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here