San Francisco real estate is cheap

[Jon Klaus]

Everything is relative

Financial Samurai is one of my favorite bloggers. Here he shows that San Francisco real estate is cheap.  

[Account Closed]

Originally posted by @Johnson H.:

I have to do more research on this topic but this is a good start. San Francisco real estate may still be a great long term investment. @Account Closed I bet this applies to your area too.

Yes.  I'm getting much more bang for my bucks focusing in Downtown SJ.  The price/sq.ft. is almost double the moment I move up to the Peninsula.  Also, I'm banking on the 7M sq.ft. office space for Amazon campus at Bay 101, and Bart is coming to Berryessa.  I'm trying to load up as much as I can, but I don't want to get into speculation given where we are with property prices. 

I still like the Bay and don't intend to invest anywhere else. 6% - 8% CCR is good for me after stabilized. I'll even settle for 4% - 5% CCR if the building is in a nice tree-lined neighborhood. Given we can borrow at 3%, it's not a very tall order, but it's still difficult to find deals. That just tells you how competitive our market is.