there’s risk that people stop paying their rent, obviously. If you’re not buying a distressed property you’re only making money on appreciation here. Buy somewhere else.
Don’t do it
Where are good cap rates then ?
If you're lucky you can still find downtown SJ properties that break even. Getting good cash flow is hard nowadays.
Planning on buying a bunch where .. how can one afford a bunch in bay..
Rent is like 3-4% of the prop value in Bay area. This doesn't cover mortgage + tax +insurance+maint. Not a good investment if you do not assume appreciation.
This is just math. A townhouse that sells for 1.4 rents for 5k with hoa like 500 and tax like 15k
He's right. Cap rates here are very low.