Buying in Norther California

[Kristi Miller]

Hello:

Although we live in Napa, CA, our real-estate portfolio is with properties in the midwest. We just understand that area the most. After looking at some multi-family properties here in Northern California I do not understand how anyone makes money investing here if you are a buy and hold person who prefers to buy properties already in good condition? The price of the property is much higher than the rents being paid. Any insight? Are most investors in CA paying cash for the property and investing for appreciation? as opposed to cash flow and high cash on cash return?