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Sorry I didn't see this thread until now.
1. Benicia's downtown marina district has areas in which it is actually sinking into the Carquinez. I found a condo there for 299,000 - absolutely gorgeous, within walking distance to downtown. Problem? the foundation is sinking and there are lawsuits everywhere. It's now 250,000 but I can't see anyone buying it. I don't know how widespread the problem is, but I know it's a problem.
2. Vallejo is a terrific buy right now. Everyone is so scared to move there that they totally miss out on some amazing deals. I'd go look in Glencove (borders Benicia), Hiddenbrooke (for really scared folks), Mare Island has some new development but it still looks like a ghosttown, and anything over near Blue Rock on the Automall Parkway and extension is nice. I'd also feel confident within the neighrborhoods off Columbus.
As another poster said, American Canyon, and that's priced well too.
P.S. I'd totally move to any of the locations I mentioned. They're not just fine, they're priced really well and crime happens anywhere. If I had to pick, with price in mind, it would probably be Glencove. I put 2 offers on short sales in that neighborhood in the past 6 months - they just didn't work out, or I'd definitely be there.
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