@Lance Knapp I would almost bet on it!

A,B,C, or D2) What cash on cash do you expect?

I have broken this rule a few times in Indianapolis, where a handful of my 2/1 units were purchased for around $30k, but I grabbed those off market and are in gentrifying neighborhoods I was willing to bet on. 

A, B, C, or lower? 

When you add all these of these up, you barely break even on cash flow but could make a killing with the appreciation.I am not saying these houses are not good investments, I think investing now is a big bet on rents and property prices continuing to go up in a market that is already one of the hottest in the US.

They will prioritize your job for 50% pay, you can bet on that.

If I were to rate the area, I would say C- or D.Hope that helps.

The 1031X gets rid of all your Vallejo exposure at that price, selling the house and keeping the lot as a kicker gives you some speculative upside if Vallejo keeps going, and the cash-out option gives leveraged exposure to Vallejo, the most concentrated bet on the area.

I'm also working with a small group of investors looking for apartment complexes with value play potential - Class C or B, distressed property and/or seller, high vacancy, etc.

You're right that population decline may increase your chance of a good deal but don't bet on your property appreciating.