patrick.net

Read this article first to get psyched about West Oakland.
http://www.sfgate.com/business/ontherecord/article/Rick-Holliday-king-of-the-condos-3824246.php#photo-3362069

Then try this one on for size:
http://www.redfin.com/CA/Oakland/1627-11th-St-94607/home/1364261
Or for a little more elbow grease:
http://www.redfin.com/CA/Oakland/1730-8th-St-94607/home/1755919

For West Oakland BART properties, though, I think you need what they call the 'long view'.

Sacramento (central valley, I know) has taken a beating and there are some very cheap houses there. I don't love the area but I think you might make some money. Nearby Elk Grove has many houses that are nearly new and absolutely dirt cheap. I am not terribly familiar with the area so I can't tell you about crime, schools or rental demand. Also nearby, Roseville was an up and coming community before the crash. There might be less dirtbags there but I’m not sure about prices.

If you can stretch a bit, you can pick up a decent 3 bed 2 bath townhome in Danville for around $350k, maybe lower. There is low crime or no crime there and generally good rental demand with high rent prices. They are not always available but they do come up. It’s close to the areas you have been looking in.

http://www.trulia.com/sold/Danville,CA/#sold/Danville,CA/3p_beds/2p_baths/price;a_sort

I would definitely look in Pleasanton, Dublin and San Ramon. You might find more to choose from there.

Biff

EBGuy says

Read this article first to get psyched about West Oakland.

Read this article second to get un-psyched about South, West, North, East and Central Oakland:

http://www.nbcbayarea.com/news/local/Oakland-Gangs-Explored-in-Documentary-jw-59388487.html

Biff

BayArea says

From this Redfin plot, it's indicating a market surge of ~16% in 2012 for Concord, CA.

some kid makes an algorithm for Redfin, without any clear warranty on how valid it is and somehow its as good as gold...

its rather shocking how much bad info can be overused by the public.

You should look to dqnews.com for far better and accurate data...
they been publishing data long before the Internet using true accurate methods.

E-man says

My partner and I just got approved on a short sale today for a small 4/2 SFH in El Sobrante for $220k.

1997 prices plus inflation.. if not less... good call!

You need to educate the RE bulls how to negotiate purchase prices.

Hercules is cheap right now but BART is not nearby and the drive to SF is often a nightmare. It seems safe, friendly, and well taken care of. City finances are a mess, but I'm not sure if homeowners will take a hit or not.

As an example of current pricing, my neighbor wants to sell his 4-BR 2-Bath house (1770 sq ft) on a 7200 sq. ft lot in the hills for $350 or so.

The area is quite diverse: half Asian/Filipino/Mexican/African American, about a quarter Caucasian. I'm a Caucasian female and usually feel quite safe here.

Rare horror films on VHS cassettes in mint unopened condition.

Mobile hydraulic injury emergency clinic.

Tooled leather stall at the Flea Market.

Celebrity detritus (toenails/hair clippings/tampons, etc.)

thomaswong.1986 says

E-man says

My partner and I just got approved on a short sale today for a small 4/2 SFH in El Sobrante for $220k.

1997 prices plus inflation.. if not less... good call!

You need to educate the RE bulls how to negotiate purchase prices.

Thomas,

Thanks for the compliment. I'm not a RE bull as some people labelled me on here. I just let the numbers be my guidance. I always have a back up plan before going in. The worse case scenario is we're walking away with $20k-$25k net profit if things don't work out. If I partner with a first time home buyer on this deal, we're likely walking away with $60k-$70k of equity in a couple of months.

That's all there is about RE. Leverage other people's money, leverage other people's knowledge, leverage other people's time, and leverage other people's credit. It's that simple.

If shit hit the fan, we walk away. Yes, we ruin our credit. We lose other people's money (the lenders), but we still have our cash and our knowledge. The beauty when shit hit the fan is that "cash is king." Then we take the cash and go for the next round. That's my investment model. :)

Good luck! as you point out your doing the numbers and knowing your risk appetitive.

Yup says

E-man, you are not a real estate investor, you are a thief. You are taking zero risk. You want all the reward and if it doesn't work out you leave someone else with the bill. Why anyone would take advice from you about buying a home from what you just said is beyond me. You are in fact proving that real estate is dead and the only people left in the game are the crooks.

Oh snap!

I don't believe investing in real estate period. But if I were to do so- I sure as hell wouldn't do so anywhere in California. This is just my opinion but probably a better bet would be in faster-growing, more development-friendly states, as in primarily in states like NC, TX, GA, TN, and other areas that are experiencing a surge in population because people are moving from the coasts to these places.

Anyway..... Not investment advice.

buying a house? are you kidding? I won't give those bankster criminal, bloodsucker thugs a measly peso of my hard earned legal tender! Ever!

repo4sale says

Vacant land that is under $1000 per acre....

I bought and sold over 22,000 acres in California.

I own over 5000 acres today, with no debt, California land.

I averaged 1167% gross profit per acre in California...

Per Acre!!!

Resume Bio:

http://www.linkedin.com/pub/john-jason-chun/12/270/860

PS: 4 semesters of Calculus taken...

IRR calculated every day on 2 computers since 1987

IRR/MATH GENIUS!

If you want a fantastic return, go here. ^^^^^^^

Darrell In Phoenix says

"Where would you invest in Northern California today with the highest return?"

You mean the highest risk of loss presumably.

Undoubtedly, that area is the Bay area.

Darrell,

Learn to shift the risk onto the lenders, and you can invest anywhere including the Bay Area.

edvard2 says

I don't believe investing in real estate period.

I know you don't. You're a stock man. Different strokes for different folks. Nothing wrong with that.

I think his main point was that you're not actually an investor at all. You're more akin to a con man.

Goran_K says

I think his main point was that you're not actually an investor at all. You're more akin to a con man.

Con whom again?

E-man says

My partner and I just got approved on a short sale today for a small 4/2 SFH in El Sobrante for $220k. With 25% down, PITI is less than $1,200/month. We think it can be rented out for $2k/month. Nice area with predominantly Caucasian neighbors. We bought it because this deal just fell on our lap, and the numbers work. If things don't work out, we'll resell it for a profit. Eh...

That's great, congrats to you and PK.

Yes, 4/2 in that area goes for anywhere from 1,800-2,500. Your competition will be the newer homes in Hercules and country club on the bay side of the freeway. Most of those are built between 2001-2010 whereas yours are probably a little older and established.

2K area is the sweetspot for the demographic (middle class hispanic, caucasions, and southeast asians) (The established areas are most likely Causasians who have been there since the 70's) most will likely work in Oakland or even in the city. While 2,000 is the sweetspot, no one will pay more than 2,800 for rent no matter how big or grand the homes is. At that point, location matters. That demographic prefer Berkeley Hills, Walnut Creek, Lafayette.

80W approach is one of the worst commute in the country but most will exit @ EL Cerrito and park their cars to take BART to Oakland/San Francisco. There's also buses (air conditioned WI-FI buses thar runs every 20mins) that goes from Parking station to downtown directly. These buses use the carpool lane and much faster than driving. There's also casual carpool where you can randomly pick up people (or be picked up) and drop them off downtown. It's a crazy system but works and very popular in this area.

I generally prefer Hercules/El Sobrante over Concord for one simple reason. It is San Pablo Bay, 1 miles of homes and then the steep Hills. The building is pretty much done prospectivly based on natural limits.

E-man says

Con whom again?

C'mon E-man. Naive doesn't suit you.

I like E-man the guy "who just wants to see the world burn".

Case in point:
E-man says

That's all there is about RE. Leverage other people's money, leverage other people's knowledge, leverage other people's time, and leverage other people's credit. It's that simple.

If shit hit the fan, we walk away. Yes, we ruin our credit. We lose other people's money (the lenders), but we still have our cash and our knowledge. The beauty when shit hit the fan is that "cash is king." Then we take the cash and go for the next round. That's my investment model. :)

Goran_K says

E-man says

Con whom again?

C'mon E-man. Naive doesn't suit you.

I like E-man the guy "who just wants to see the world burn".

Case in point:

E-man says

That's all there is about RE. Leverage other people's money, leverage other people's knowledge, leverage other people's time, and leverage other people's credit. It's that simple.

If shit hit the fan, we walk away. Yes, we ruin our credit. We lose other people's money (the lenders), but we still have our cash and our knowledge. The beauty when shit hit the fan is that "cash is king." Then we take the cash and go for the next round. That's my investment model. :)

What's illegal about what I'm doing? Con man do illegal stuff. I don't. Big difference.