@Sean Mamola I follow the local markets extensively. There is an absolute shortage of properties for rent. One of my friends spent the last 5 months trying to find something suitable. So for now, I don't think adding 800 properties in Mountain House (?) is going to move the needle much when we are tens of thousands of units short in the "greater bay area" (I use that term even more broadly as people consider the central valley now the bay area- but I digress)
My approach has not always been for cash flow. I invested for appreciation once, and my "Bet" on appreciation lost. So I learned from that and changed my approach and now I purely invest for Cash Flow. If it were me? I would take my winnings and run.
That being said, I have seen California investors successfully 1031 exchange their "Winnings" from appreciation and roll them over to cash flowing out-of-state properties. And I have seen one investor go from making $300 a month on a single property to $3,000/month on multiple properties that he was able to buy with the same money. No additional cash out of pocket. No tax hit from those funds. Work? Yes, a little bit of work. But making money requires effort. Passive income doesn't mean you don't have to work.
I think you're in a great position. Good luck.
