You will also want to factor in predictability, volatility, control and the amount of work involved.I started with retirement contributions and then borrowed from my 401k when I found real estate, flipped some to build up capital, transitioned to more buy and hold, continued to contribute to the retirement account along the way and then increased contributions as I aged and built up income from real estate and W-2 job.The answer to your question will be more about your interests, abilities and goals as there is no single right path.  

Sure, it will appreciate well long term... but in the most immediate future it is likely to contract moreso than less volatile markets.

CA appreciation (as volatile as it can be) is hard bet against in the long term. 

Frankly anyone with a volatile tendencies shouldn't have any dog in my opinion.  

If you wish to insulate yourself against volatility a good strategy to follow is ‘value’ investing.

Downside of that is you're exposed to the volatility of the stock market.The next thing I'm going to research are syndicated commercial deals, it seems like with the right network of sponsors it should be feasible to achieve double digit returns in a completely passive way.If/when there will be a market correction, I will be looking into buying SFR in my backyard (Northern CA) so I can assemble my team through BP references and always be within driving distance in case something happens and I have to manage my own investment.

Also, cash flow is not constant ... it changes over time with rent increases (whose rates are different for different markets) and you need to consider the quality/volatility of the cash flow which depends on the quality of the property/neighborhood as well as your ability to control operations.  

Bottom line is RE is far less volatile. 

I'm not quite sure why one would pursue long term rentals in Sac today- it's expensive, and a volatile market with a history of heavy depreciation during recessions. 

North toward oil dale is nice if the oil industry picks back up but volatile.