Congratulations! San Francisco is great!

I live in the 'burbs out in the greater SF Bay Area. If you really want to soak up the experience of San Francisco, then living in The City is the way to go, but it can be EXTREMELY expensive. It can also be a major hassle if you are not used to that kind of an urban environment. If you want to save some money and maybe not dive deep into the urban lifestyle, then I'd try living outside the City. I lived in Berkeley for awhile, and that was more than urban enough for me --- I don't think I could have handled living right in SF for very long.