He said it should start cashflowing in year one and that I will miss out on all that appreciation if I don't jump on this.

Some believe in cash flow later down the road by buying class A/B in high appreciation areas.

Put the work into the home to bring forced appreciation.

Any thoughts or opinions would be greatly appreciated as we want to maximize the potential of the space.  

Greatly appreciate it !

 - San Diego’s RE Appreciation has been outstanding forever.  

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Greatly Appreciated 

Really appreciate the perspective.

It can absolutely be done in California, and although California makes it very difficult to manage properties due to tenant-friendly laws, if you know what you're doing or have a great property manager, California is an excellent place to invest due to high appreciation.