Looking to kick off my first rental property in CA

[Rahul Ram]

Residing in the San Francisco Bay Area, I am currently exploring the prospect of acquiring a long-term single-family home (SFH) rental property in California or a location within convenient driving distance of the Bay Area—particularly eyeing regions like Sacramento or the Central Valley. The motivation behind this endeavor is to mitigate the overexposure of my investment portfolio to index funds and the stock market, seeking to establish a diversified foundation with the inclusion of real estate assets.

Given that this marks my initial venture into real estate investment, I am eager to dip my toes in the proverbial waters and assess whether I possess the aptitude for this venture. As I navigate through this decision-making process, a question has surfaced: Is my perception correct in thinking that California leans more towards appreciation-heavy investments rather than prioritizing cash flow? I am keen on gaining insights from seasoned individuals on this forum who have weathered similar phases in their investment journey. Your experiences and advice would be immensely valuable as I navigate through this exciting but unfamiliar terrain.