Living in the Lake neighborhood of San Francisco is actually pretty great from what I have heard. Here's why:
1. You are close enough to the city that you can be anywhere in 15 minutes.
2. You're far enough away from the city that you don't have to be constantly worrying about getting mugged every time you take your poodle for a walk.
3. The 1920's style architecture is gorgeous.
4. You're right next to the Presidio--so a beautiful green space to look out onto.
5. There are lots of restaurants nearby.
6. Great private and public schools.
Of course, it is expensive. But it sounds pretty great to me, if you can afford it.
