Best cities to invest in around Sacramento?

[Matt Smith]

I would like to know what the best cities are to invest in around Sacramento in term of cash flow for buy and hold? Thank you!

[Derek Daun]

Most landlords still pay water/sewer/garbage in Sacramento. A lot of central Sacramento still doesn't have water meters, so it's an easy fixed cost to just build into the rent. Personally, I prefer doing that as those bills end up getting stuck to the property as compared to the tenant if they are left unpaid. With water meters slowly being turned on, charging water to the tenants is becoming more common; I've heard there ways to have the tenants direct billed for just the water portion.

As far as the best cities around Sacramento, I still prefer transitional neighborhoods in Sacramento itself. But that's partly because I'm too lazy to go out of town.