Small Multi-Family market in Bay Area, CA

[Kushal Shah]

Hi All,

I am new investor based in Bay Area CA, looking to invest in small multi-family (Duplex/Triplex). What I am noticing in the Bay Area is most small multi-family is really old construction around 70-80 years old. Do you think its worth investing in these older properties in the Bay Area from resale stand-point? Do people invest in them with particular strategies in mind (development project down the line)? 

Other question - From a rental income stand-point, its not going to cover the mortgage payment entirely since the prices are so high. Is counting on appreciation the only strategy in a market like this, or are there points of view?

Thanks in advance for taking the time to respond.

Best,

Kushal