As you know its near impossible to find a good cash flowing deal in CA due to sale price, taxes and lack of inventory.Last one I closed on was over off of Germantown Road it was a great 2 unit that needed a little TLC for $160K but passed an inspection and was livable.

Also, how does one assess whether or not one can turn a profit after paying principal/interest, insurance, and taxes each month?

Make sure you do your math correctly when analyzing property taxes…they will be eye opening.

That alone can kill a deal due to over the Max DTI limit.A cash out refinance is tax free and its an immediate liquid reserve so it can be used as an Asset or PITI reserves.

Conversely, if new houses are being built frequently, older properties may struggle to maintain their value.Property taxes also play a significant role.

I have a tax firm that specializes in working with real estate professionals/investors.

We bring/offer the mortgage loan investment to the group & handle all the servicing, including chasing the monthly payment/insurance/taxes, foreclosure, etc.

Remember, they can always refer themselves😊Now, make it a goal to call at least 5-10 of these people EVERY day and ask a MAX OF THREE off the list below of who they know that:Just inherited a homeHad a loved one pass awayIs behind on their mortgage or tax paymentsHas a relative that can’t take care of their house anymoreHas a house they’re having trouble sellingIs facing bankruptcyKnows a probate attorneyKnows a bankruptcy attorneyetcWhy only three off the list per contact?

Also, I believe the tax benefits are horrible compared to the states, but I'm not too sure.

Typically its done for open space or use for community property (ie. fire station location or other county use) and typicaly would assist in increasing tax base.