Buy & hold in California Central Valley

[Steve G.]

Hi All,

My son is looking for a positive cash flow houses with 20%  down payment in Central Valley area. He is  26 living in San Jose area as a software engineer. He wants to buy his first rental. We really appreciate to hear(experience) from those who have bought in Central Valley. What cities have better/stable rental demand?

Thanks Again

[John D.]

"I would imagine that getting a house to cash flow with 20% down is tough throughout the state."

While I'm not in the central valley, in rural California, there are lots of cashflow opportunities.  I just sent in a high bid confirmation on a $153k 2/2 with additional unit over the garage, newer construction, that will rent for $2,300 or so.  Several hundred a month in cash-flow, and this is not one of my better deals.