Is California SFH investing really just speculation?
I have read through several posts on real estate investing. This site has a lot of helpful information. I am currently a stock market investor and want to evaluate investing in real estate. I am based in California, and there is some suggestion that it is best to start investing in an area close to where I live. I don't mind managing my first investment to gain the valuable experience.
I would first like to evaluate a 3 bedroom purchase, in a middle-class neighborhood, in the $150k range. But from what I read about the 2% and 50% rule, rentals in California (at least my area) do not seem to support cash flow. So do investors in California's middle-class neighborhoods really just rely on speculation?