Does anyone have a recommendation on a particular neighborhood that offers health cash flows margins in a pleasant area? 

If there ends up being too much on your plate then dial it back a little in real estate so you don't sacrifice your education, health etc.

You have to know which neighborhoods and property types have the highest potential for appreciation given changing demographics and the underlying health of the local economy.I have a feeling that giant sucking sound of dollars flowing out of California will meet with disappointment ...

I currently live in Houston, and would probably purchase in Houston for the sake of ease and learning for my first property.Anyways, on to the meat of my question: I am interested to hear fellow investors' take on the health of the real estate market in the US.

You don't have a crystal ball there may be a job loss or health emergency (or lottery winning) that hit your tenants in while they are under contract for one of your properties.

He wants to sublet it to me while he checks himself into the VA hospital for some health issues.

My mother is getting older and starting to have some health issues.

Will try and renegotiate this.Also, to clear a few things up - seller is selling because he is old, his health is failing him, and he is moving to Florida, not because the economy.

Tons of success, health & happiness.

The other thing it'll take into account is mental health.