There are a lot of A, B, and C areas that all have differing cash flows/RTVs.  

Everything starts with a B, A is where you and I would live, cant make money there .  

Hoping my numbers are feasible as I acknowledge this isn't the most ideal deal.Property is a duplex in a B/C neighborhood in Sacramento County, listed for 425k, under contract for 400k.

I posted this elsewhere but reposted this here as I felt it was more relevant to people who are already familiar to the Sacramento market.Property is a duplex in a B/C neighborhood in Sacramento County, listed for 425k, under contract for 400k.

First you'd want to determine if the substantial renovation you plan to do qualifies as a substantial renovation under AB 1482 and if so yes you would have to pay those tenants you evict relocation assistance. 

As long as you have renters who will want the space and investors who want to buy them you will support the property prices.Depending on what class of property you are buying ie Class A, B, C or D will probably determine whether your property holds it's value if those two demand drivers remain stable..

@Tom Harrington So, what's the problem...I only invest in A-B class properties...no meth use in the area...don't know many meth addicts that can afford over $1200/mo. for rent...

I'm planning to rent in A-B locations. 

You're likely seeing a BS "listing" price on the MLS that's meant to get your interest, then it will direct you to an online auction..Hubzu, etc.  

Most transactional deals are with cash C buyers.However in Jeff's scenario where the C lender/buyer backs out right before the BC closing, the title agent is able to unwind the AB transaction as if it never happened.