I'm doing a bit of both but my thought process is to take advantage of appreciating prices, especially in Orange County by rehabbing and selling.

I wouldn't send the same letter to owners in Silicon Valley or Orange County.

I live in Orange County and do not belong to any RE organizations there either.

...........Orange County CA, according to this article in realtytrac.com, in terms of annual gross yield percentage - 5%.

@Chris Mcalister  I would not follow that advice that this is like a distressed asset and you should offer less than you normally would.. as this is not the case... what Elizabeth is talking about is apples and oranges compared to buying this type of asset... what you want to do is get it into contract so you can then do your inspection and based on that you can do an inspection addendum if you need to lower price.. other wise you won't get in the game.As long as its fairly priced in the first place.. and depending on who the seller is

I have been looking around for a duplex or single family resident that has + cash flow in Orange County or L.A County but I cant seem to find anything..When I'm lucky I can find one that the rent comes close to mortgage payment with impounded taxes...Once you add the 50 percent rule for expensed then forget it its very negative..We look through the MLS and we cant find anything...Is it time to consider auctions at the county court house ?

I look at the cash on cash return and it is not a whole lot higher than my single 5BR house but that's apples to oranges I guess comparing a 30 year mortgage at 3.75% to a 20 year at 5.25% or whatever commercial is going for now.  

From the auctions in Orange County from July 30, 2015 to August 18, it seems to be the case that auction winning bids are less than 15% discounted from market prices.https://docs.google.com/spreadsheets/d/1Gta1Q8JMFC...

Bigger Pockets was one of the first resources recommended to me, and it's been a gigantic help.By way of background, we reside in Orange County, CA, and just within the last several months finally emerged from the smoking ruin of the Great Recession.

Hey Wesley, in Southern California, a 5-6% cap rate is fairly standard, with highly desirable areas in parts of LA, Orange County, and San Diego having cap rates in the 4-5% range.