Question about generating + cash flow in high priced markets

[Brady Winder]

I am a new investor interested in buying and holding single family homes. I currently live in Southeast Texas, but I anticipate moving to Tacoma, Washington within a year. All of the real estate investing books I have read emphasize the importance of generating a positive cash flow. This seems relatively easy in Southeast Texas, but very difficult in Washington where you would pay almost double for the same home. The rent in Washington is not that much higher than in Texas.

By purchasing a property well below market value you can make money, but you still may not be able to generate a positive cash flow. Do investors in these higher priced areas just live with negative cash flows?

Is there anybody from Western Washington that thinks I am way off base?

Thanks for your help!