Tracy, CA Home, value is 400K, rental income is 2100-2400/month range (signing property agreement next month, converting this to rental from prior primary residence); no debt, no mortgage.2.

There is just not enough inventory in Cali to keep them home still.

Houses here range from $30,000-$60,000. 

San Jose and surrounding areasCould someone give me a very broad range of prices and frequency of new construction projects around 30-50 sq. miles around downtown San Jose.  

Just looking for an approximate range, are we talking $5k-$10k or $40k-$50k? 

The average 2b/2b in the same building are ranging from $260,000 and up to $400.000.

My realtor says he is working with a family here in Denver that is shopping in the ~$350 price range.  

Then if he has the same information from 3-4 more purchasers and the cap rate comps are in a range say 8.75 - 9.25% he'd make adjustments to his potential property and say he thinks a 9.1 best reflects his property and would use that cap rate against his a analyzed NOI and come up with a market value.  

Is there a sweet spot to look for when analyzing a market to be a potential "flips" market with regards to months of inventory on the market and the average days on the market a house sits before it sells? 

Most of the houses with 2 stall garages are selling in the $110-125k range depending on upgrades and if they've added a 4th bedroom in the basement.