California Rental Property Investors

[Scott Doyen]

Hello Fellow BP Members,

I am currently new to the Real Estate game & trying to absorb and learn more about REI. I live in the Sacramento region. When evaluating properties around my region & California as a whole, I have found that it is quite difficult to reach the 2% rule or 50% rule in any properties at a glance. I understand that expenses relative to mortgage amount will & should be a lot less in California than other states. Regardless, here are my questions:

1) When evaluating a property generally in CA (even in Sac would be better), what percentage of monthly rent do you have for:

a. vacancy

b. capital expenditures

c. repairs

d. management

e. other

2) After crunching the mortgage, prop tax, insurance, and these other expenses above, what would be considered a 'good rental property' to invest in, in CA? You can answer in terms of monthly rental income / purchase price, cash flow, ROI, P/R Ratio, etc.

Best,

Scott