A handy search bar in the upper right makes it easy to find previous discussions, blogs, podcasts, and other resources.

Having said that, I am a bit concerned as it relates to the overall market, especially in class C properties and most especially class C properties in border states. 

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

Here are some of the more longstanding discussions that may help to answer your questions.Specifically at Rent To Retirement, we operate a turnkey marketplace that focuses about 90% on A class, new construction properties located in growth markets.

(I like to refer to this as our local version of 20+ years of the Elizabeth Warren effect;) This, combined with a healthy dose of nutso nimby activists excel at limiting supply, making SF property an even more exclusive and desirable “achievement” for the upper class to obtain.

Keep in mind that some of these C class areas in Columbus your pro forma will look better but you should be running a higher expense ratio. 

I believe it to be a little Southern California hidden treasure for cashflow, mainly class C but if you know what you are doing its a really good option to invest locally in CA with decent returns.

If this is a Class A property in a Class A area, you have the least chance of getting a bad tenant. 

For a while I looked into medium size deals like 30-50 units in class B neighborhoods, but ultimately could not negotiate a deal to the point where it would have made financial sense.

If you learn how to use Hard Money loans properly and how to find good deals in need of rehab, there are plenty of areas of the country where you could buy 3-4 rent properties in solid middle class areas with good cashflow.