Contrary to most business lending, the REI industry has a lot of "non-bank" lenders that provide attractive loans that can lower your cost of capital and improve your profit/cash flow. 

I've helped a lot of investors in your area, and I find that many of them end up purchasing rentals in the Central Valley for the very reason you mentioned.  

While @Phillip Austin mentioned Raleigh is a higher returns its just very much a appreciation market, you will not find rentals that cashflow, so depending on your goals its a good or bad market.

If you can't find a good manager, walk away.

@Alba Cheung It would be nice if you provided us with an update.

Cash flow is definitely the biggest challenge; both in terms of finding properties to buy that cash flow with a loan on them and just company wide given interest rates and labor/material is up and, at least where I'm at in Jackson County, MO, taxes are way up too. 

I suggest finding a good insurance agent and a good attorney/CPA to help you get everything organized.

These properties can provide cash flow and diversification while qualifying for favorable residential loans.

I have a a great project in a prime location, but finding the right investor has been pretty difficult. 

It's the only that I can affordable How did you find this deal and how did you negotiate it?