How should I invest ?

[Jack Chang]

I have about 400k in capital I been holding waiting to deploy in real estate. I’m looking for passive and appreciation. 
I would love to househack but my market is so expensive, I’m in San Francisco. I’m not looking to put all my money in one property either. 

[Scott E.]

Nice job saving up $400k. That is more money than most people save in their lifetimes. So what's most important from here forward, is don't blow it.

Generally I'd recommend investing close to where you live. You know that sub market better than anywhere else in the country, and there are benefits to being in close proximity to your property.

With that being said though, I haven't read anything good about the San Francisco sub market in a while. Plus as you say, it's very expensive.

@Nathan A. gives great advice. You need to pick what market is a good fit for you based on the factors outlined in the links he posted. 

Not a good plan to blindly follow the recommendation of some random person on the internet so be careful with responses that point you to specific markets.