However, there are 2 reasons why this may not be feasible - here's my example:- I live in the Bay Area, CA which as you know is very expensive- Maybe there are rundown properties that are available on the cheap in my area. 

Half of my rental portfolio for the last 10 years in the Bay Area have been Section 8 tenants.  

Regards, RuiThe numbers are in fact super attractive. its almost 2x what I get from Lisbon South Bay area (where I started investing 3 yrs ago).

Roseville is solid, as there are a lot of bay area residents moving there.

@Richa Wardhan, I have investors purchasing newer built homes in the Tampa Bay area doing long term rental, at around 375k-400k price point and cash flowing close to $1500 a month.

Investing locally in the Bay Area will come with higher acquisition costs, but appreciation can still build wealth long term, so don't be weary if you're property doesn't cash flow right now the bat.

Me too, he's 1 of the few in the Bay Area that I could converse with.

For Livermore, the activity is slower compared to the general Bay Area so you would need to be more cautious on picking the right property to flip, and the margin has to be large enough for it to make sense.

@Denise LangI'm not sure what part of California you're located but I invest in the Bay Area and Indianapolis metro area.

I am going to assume that you are doing this close to home in the bay area of CA.