Cash Flowing in Southern California

[Wiley Strahan]

Hi All,

I have been looking at properties across LA (Long Beach, Hawthorne, Inglewood, etc.) and I have found that the vast majority, if not all of the properties do not cash flow. I talked with my agent about this and she said it was normal in California to not have a property cash flow especially in the first few years. She mentioned that her other investors buy solely for the tax benefits and appreciation.

 Conversely, I talked with a few others in the real estate community (investor & agent) and they definitely disagree and provided examples of properties cash flowing in those same areas. Those other properties also had rents that were below market which could be a contributing factor. Is this just a matter of the properties I am being sent aren't good deals or should I adjust my expectations for cash flow? I get this isn't the midwest or south, but I was at least expecting some cash flow especially for properties where the rents are below market. Any wisdom is appreciated.

Thanks!