I am a software engineer based in San Jose, CA. I am looking to buy a property here this year. I would like to know how I can buy a property and make it at least break even if not cash flow.The reason I want to buy here is because of the appreciation that I cannot find elsewhere and the leverage I get on properties that are worth close to a million dollars. I have been renting forever and don't want to rent forever. I don't have long term plans of staying in the bay area. Are there any strategies that could be used to make properties cash flowing in the Bay area so that I can rent it out in case I want to move in the next 2 or 3 years after buying?
Property Manager / Investor · San Jose, CA · Member since 2013 · 780 posts · 301 votes
3y
Hi Nischal,
Multi-family homes will be your best bet to find a cash flow neutral or better property. Of course you can always use a larger down payment to achieve cash flow. But that changes the ROI too. The bay area is still competitive for good properties. You'll need to have a good agent and be ready to act fast (within a day often even hours) if/when a property hits the market that meets your criteria.
Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
3y
Your best bet is to do a house hack of one kind or another. A duplex, a SFR with multiple extra bedrooms, or a SFR with an ADU or JADU. You can secure the best available financing (available only to first time home buyers) for a partial investment purpose if you do one of these kinds of deals.