Cash flowing cities in California

[Dustin Mitzel]

Looking to jump in and buy a multifamily. I am wondering what cities/markets in California offer the best cash flow potential? I am currently in the bay area and there are not a lot of opportunities for positive cash flow in this area. I was thinking somewhere out in the valley like Sacramento, Fresno, or Stockton but I would like to get other investor's opinions.

[Leng Thao]

Like many, the Fresno market was much better 2-3 years ago. Now, more challenging to find strong cash flowing properties. You will usually find that it will cost about 50-60k / unit in the Fresno area. You may still cash flow but the margins will be on the thin side. The "1% Rule" can still be met here. 

I have a 4plex that I acquired last year via short sale for $135K + 5K into repairs in a C class neighborhood. It is low income and/or section 8. Even these are challenging to find these days. 

I feel that for California, Stockton and Sacramento may still be viable areas. 

Hope that helps.