Can't Seem to Find Positive Cash Flow Anywhere

[Brian Sherman]

Hey Investors!

I'm looking for a single family or duplex in the Sacramento area for buy and hold. I'm currently talking to RE agents and looking through the MLS. But, I just can't seem to find properties that pencil out to show positive cash flow. I know that the market is crazy right now and people are fighting over listings and offering more than asking price on any given property. Is there no hope for finding an on-market deal that gives positive cashflow? I've looked all over and I'm starting to consider going out as far as citrus heights, but this is much farther from the city than I was hoping for.

What do you all think? I'm trying to learn about doing off-market deals right now, but I still have a lot to learn. 

[Steven C.]

If you want to invest in CA, appreciation has to be in your ROI calculation, not just cash flow. Appreciation will be higher in CA compared to other parts of the country due to stricter regulation and therefore more limited new construction/land, not to mention higher costs.  You can make money with cash flow or more limited or cash flow/appreciation or even negative cash flow and appreciation.  It depends on your goal/time horizon/capital.  If you don't consider appreciation in CA, it's like looking at a growth stock and wondering why the dividend yield sucks.