After PITI and HOA's, I am only cash flowing $145 per month (excluding cap ex, vacancy, ect.) - so my real cash flow is close to zero.

It’ll be approximately a 6.5% cap for me after accounting for expenses.I just helped a client buy a 4 unit 7 cap (After expenses) in Riverside for $659,000. 

@Dan D.As a fellow investor in southern ca, my advise is that out of state route is good if you can scale to 10 or 15 properties rapidly. if you are only interested in two to three rentals, save these downpayments and invest in area two to three hours away from bay area like bakersfield, fresno, sacramento, patterson city etc.Its not worth your time and hassle with pm companies for two to three rentals in out of state scenario.i can still find decent cap rates within area two hours away from los angeles in multi family my two cents...

IMO the grocery-retail-apartments all in one footprint is a nice model for redevelopment in urban areas where currently it's difficult to locate a big box style store plus parking lot, etc..I know a lot of people gripe about gentrification, but it's great for the long term viability of a neighborhood.

Compare them to local comps or cap rates.

Each one of them have a flashy websiteOne can invest in the Public REITS, but will not get much diversification from the stocks & bonds & presently have low yields.I understand the step up in basis for the heirs after we pass away, but at some time in the future(in old age) if we decide to not do 1031 Exchange anymore, I suppose we will have to pay the Cap Gain Taxes, only it will be a much larger sum as all the carried over proceeds will be taxed. 

As a buyer for many years - I have and many investors have had this problem - finding cash buyers, as you know when you do assignments it is difficult to depend on the so called "cash buyer", they talk a good story, but usually can't perform.About 18 years ago I discovered a great way to assign, flip or recycle real estate for all cash, in as is condition with settlement within 6-7 weeks from the day I sign the contract.

But it's a difficult puzzle to solve: cash flow per square foot is just higher for smaller units.

That is a good point though that being a real estate agent is a full time job and trying to do both at the same time would be difficult...

As a new comer trying to follow 1% rule, cap rate, CoC, NOI, 50% expense rule and so on and so on, can be mind boggling.