The Bay Area is full of nice used bikes. It is well worth looking there before going for a new bike. If buying new, many shops are closing out old models for the 2016s and there may be some deals to be had. Look around a bit and see what is available within a reasonable driving distance to get to the shop.
I'll echo the points on equipment above. If you are doing this for fun and want a dedicated road bike, going with 105 or better will pay off. These "nicer" gruppos are better made, easier to work on/maintain, and last longer. (I've worked on, replaced, maintained many bikes with different component groups over the years). There are some really ugly climbs to be had in the Bay Area, so a compact front chainring and up to a 27 tooth cassette drivetrain gearing will probably serve you well for all-around riding in that area.
Beyond what type of parts, it is really, really, really important that the bike feels comfortable and has a good fit if you are doing more endurance riding. If the bike is not a good fit or can't be made to fit with some minor parts swaps (stem length, handlebar width), don't buy it even if it is an otherwise good deal.