For cash flow long term, look for areas with good population growth, low unemployment, low cost of entry (midwest areas are good) and good rents. bigger pockets has a bunch of good information for you, (You can get in for $75-100K)Im in Temecula, not far from you.  

Take your time right now, if you can, because the inventory is kind of low and prices are kind of high.  

Wall Street bankers are looking at low bonuses this year, hedge fund returns are flat and some buyers of high-end real estate from China, Russia and the Middle East are cutting back.

In J Scott's book on flipping he recommends going to Home Depot or Lowes early in the morning and talking to the contractors that are picking up materials.

Depending on the bank/lender of choice you may be able to get 70-75% of your cash back out of your rental to invest elsewhere and still pay low interest rates in today's market.

It's a strong market, people are moving here, there are a lot of jobs, very low unemployment so it seems safer to invest below the 1% rule in a market like we have here.

I have experience in both distressed low value residential RE and student housing, and I'm excited to learn more.

I am looking for a low cost builder, and need to stay around 85-90 PSF exclusive of utilities.

Generally though, the returns in Manhattan and Brooklyn are rather low (I assume because of "stable" property values and appreciation) but with some digging you might find a very good deal. 

I am looking for a low cost builder, and need to stay around 85-90 PSF exclusive of utilities.