Cash Flow in Chico CA possible?

[Drew Sukovich]

Ok armed with my new(bie) real estate investing knowledge after devouring a lot of information on BiggerPockets, it’s time for me to figure out where I will begin my real estate investment career.  I already know that I’m a buy and hold investor and looking to supplement my retirement income as part of my investment portfolio.  Plan on retiring in about 7-10 years.  So now it’s really a question of what will be my niche market and location.   I’m leaning towards a college town/area within California that is within 3-5 hours from the bay area but with a focus on SFRs not the student market. May consider students but not sure this is the way to go. It would also be good if it was in a place I would eventually like to retire to as well.

So this brings to mind Chico. Really like Chico area and a lot of Butte County. Interested in those knowledgeable in the area (realtors, property managers, contractors) if there is a market that allows for buy and hold investing with modest cash flow.  Doing some quick number running using the 50% rule I could not find many houses on Redfin, Realtor or Zillow that would allow for positive cash flow. Many where negative.  I realize I'm using retail value and not intrinsic value but it still seems like a difficult market even here where house values are low compared to where I live in the bay area.

So is buy and hold cash flow investing something that works in the Chico area?

How hard is it to purchase houses here at intrinsic versus retail value ie ease at finding deals...?

If so, I would love to connect with real estate agents and property managers that work and live in the area.  If this is a good place to invest I will make the effort to visit Chico and get to know the neighborhoods and real estate market.  

Thanks,

Drew