Return on equity move

[Rio Bundez]

I'm reading David Green's book on out of state Investing and the section on ROE just blew my mind.

My first property in California has a mortgage of 130,000 and with the market being so high right now, properties comparable to mine are selling for 300,000.

What would you do? It cashflows 1000 currently. Would you hold it? My goal is buy and hold for cashflow

Or would you take that equity to another market? Like maybe Texas, Florida, Indianapolis, or Columbus Ohio? And increase your cashflow even more by putting down 25% on 5 or 6 houses.

If you would? Which market would you invest in and why?