I do see some older townhomes that are larger (4 years old, not as nice finishes) sitting around the $275-$295k mark and not moving.I'm targeting working professional millennials who want to be close to downtown, in something affordable but nice and don't need a huge house.Thanks

Plus, millennials are reaching their prime home-buying years.

I don't think that creates any real risk of a crash - per everyone's comments about supply shortages and the number of millennials entering the home buying market.

Though no one has a crystal ball, it appears that the demographics and other factors are pointing toward a massive demand that will not soon be filled.  80 million Millennials plus 76M Boomers, many who are starting to rent again.

(electric 18-wheelers) to call homeBay Area millennials will continue to move to Sacramento for the next 5 years to get a better quality of life due to affordability.

But as long as the long term fundamentals are strong, ie in the case of Dallas, people are still moving to this city, and millennials will be forming households, I would think property values and rents would go up at a pace faster than inflation. 

I am not sure if you are looking into it but looking out of the box today malls need to look also at millennials too as by 2020 they say 40 to 50% of them will be in the workforce.  

There are a ton of units there.When millennial decide to get married, they want to move to better schools and want to eventually own SFH's. 

I must be working with 10 other investors who have your exact criteria and they're all shopping this market because the potential growth in rents and appreciation and close proximity to the Bay Area.I'd check out these posts I've written here to see if it interests you:https://www.biggerpockets.com/forums/55/topics/396376-looking-to-get-unstuck-in-the-sf-bay-areahttps://www.biggerpockets.com/forums/621/topics/396725-millennial-migration-to-sacramento-2017---here-comes-the-rushAs for investing out of state, Jacksonville sounds like the best option.

:-)https://www.biggerpockets.com/forums/621/topics/396725-millennial-migration-to-sacramento-2017---here-comes-the-rushhttps://www.biggerpockets.com/forums/55/topics/396376-looking-to-get-unstuck-in-the-sf-bay-area