As far as rentals go, it seems to me that you’ll find the most favorable relationship between rents and sale prices in the lower priced neighborhoods. If a 3bd home in 92113 rents for $1,700 and sells for under $280k, why would you bother with a $500k home in 92126 that only rents for a couple hundred bucks more?
The pool of renters at $1700/mo is a lot larger than the pool of renters at $2,000, let alone $2,500.
