I travel to the Bay area quite frequently for work and know it pretty well.
You're going to need more cash to get a single family home. Straight up. POS homes are going for stupid money right now.
Do you need to work in San Francisco? Driving into the city would suck big time, plus you have bridge tolls.
San Francisco is a wonderful city, but don't discount Berkeley, Santa Cruz, San Jose, etc. Plenty to see and do. It is my favorite food region in the country!
Between Caltrain, BART and the Cap. Corridor there are some great options to get around quickly.