There are a lot of options for foreclosed properties in Oakland, and a few in Berkeley. These homes are typically listed on the MLS as other homes.

Foreclosures often times have various issues with deferred maintenance and typically need some level of work. If you are looking to rent these properties out are you aware of the rent control ordinances in Berkeley and Oakland?

I would also suggest that you speak with a lender if you have not already to discuss financing and the options available. It will be important to have your finances in place before submitting an offer.

I live and work  in the East Bay and so if you would like to see a list of current foreclosures on the market, I can email you a list. I am very familiar with the REO (bank owned) market in Oakland and Berkeley if you have any questions regarding the process.

Some things for you to consider: Can you go as an owner occupied? Do you own other property? Do you have management experience? That is how the underwriter will view it? If you can go owner occupied then you can do and FHA loan and put only 3.5% down. You could even take it one step further with a rehab loan (203k Loan).

When you start the process from being a single family landlord to multi-family business you need to look at several areas when deciding on the property.

1. Your experience in owning/managing investment property, and whether you are going to use a property management company.
2. does the property cash flow, and can you maintain adequate reserves?
3. What is the occupancy history of the property, and what is the activity of its comparables?
4. What is the condition of the property?

Check out this great virtual tour of a fourplex property that is for sale currently in Oakland:

http://www.flyinside.com/tour.php?id=27383

I suggest working with a Realtor familiar with the area and the options listed here.  Please call me with any questions you might have.  By  email: srussell@rwnetwork.com or phone: (510) 303-2549