I've been investing in Sacramento for years, and while cashflow has been harder to get recently, I've found that value add (adding square footage, beds, baths) is where the market has rewarded me the most.

I'm going to agree with everyone else on Tax Liens, and you can take it a step further by doing some due diligence on which states reward you the most for Tax Lien investing.I've been looking into:Florida: With interest rates that can hit up to 18% per year, Florida is often seen as a prime spot.

I think the market on the whole is set up to reward those who are willing to buy and hold moreso than anything else currently, but I also think that is everywhere. 

@Kevin Goldman if you plan on paying all cash on purchased rentals, your biggest challenge will be deciding what risk-reward strategy to pursue:SFR vs MFRWhat property Class?

It's extremely rewarding once you have a strong team behind you.

I've navigated similar paths and found that each offers unique challenges and rewards.

As with any market, there are risks and rewards that need to be carefully considered.In the words of Wayne Gretzky, "I skate to where the puck is going to be."

You need to decide on your personal Risk/Reward dynamics.  

I own an appliance repair business and I have reaped the rewards over the years but it has gotten very hard to prosper.

Know how I'm going to reward their behavior?