The best options I've found are occupied properties in C/D neighborhoods in Sacramento that would generate around 12% COC, but where I likely wouldn't be able to recoup significant capex and where tenants *might not* consider rent their top budgeting priority.

I know it's tempting to buy into a sub-$50k C or D prop because it fits your budget, but I'd really recommend holding off until you have more capital and can invest in a lower-risk product.

I house hacked a duplex that rented for $1700/month in a c+ area, built in 1981.

I think you'll find the best cashflow in some of the B/C class neighborhoods in our city as opposed to what I personally consider the "nicer" A class neighborhoods, and since your goal is passive income you might want to shift your focus to those areas.

@Ryan Ouderkirk @Michelle C. - is right.

I think you'll find the best cashflow in some of the B/C class neighborhoods in our city as opposed to what I personally consider the "nicer" A class neighborhoods, and since your goal is passive income you might want to shift your focus to those areas.  

Jasmine C. , I am an investor agent in KS and MO.

I focus on C+ or better areas, I want distressed properties that I can add value and max out market rents.

Speaking for myself, I wouldn't even call the inspectors and pay the money to find out what the backstory is b/c in WV you have to then hand over that report!

@Mike C.