The lessons you learned the hard way in 2008 will be invaluable now, and it’s great that you’re aiming to stay small-scale and within your comfort zone of Sacramento, which gives you an advantage of knowledge in that market.Given your experience, I'd say start by focusing on three key areas to build confidence and minimize risks:Budget Control: Over-renovating was one of the big mistakes you mentioned.

not a problem. all you have to do is stay consistent.

My first impression is that your numbers in the current economic climate seem a little rosy.I also have friends that are builders and I try to stay in touch with them on costs as we mostly do "to the studs" renovations when we buy a place. 

I grew up in RI and my dad is a carpenter in the area (was as my parents recently moved to FL) but that got me into that market with some local presence as I stayed in the Boston area. (4) properties and 14 units later, I still find myself investing in RI as the price point is about half of Boston but the cash flow is similar.

Those that still reside are not expecting to stay anyways. 

Go check and see what others are charging.I guess I have to ask what does it offer that would make people want to stay there?

As a young investor, stay organized, keep learning, and don't be afraid to ask for help.

Personally I would stay away from this.  

If you are willing to do some work, you can force appreciation, capture some equity, which boosts rent-to-value.In terms of areas to avoid, I would stay away from the East side, particularly anything along Post road between Pendleton Pike and I-74. 

@Nick WimmelYou can get decent cash flow and demand for rentals is likely to stay strong in the area given the proximity to major job centers in Cincinnati and Dayton