Buy and Hold Cash Flow in Sacramento
I currently live in the Bay Area and am looking to invest in a "buy and hold" rental property. Since home values have skyrocketed and properties don't cash flow in the Bay Area, I have looked to surrounding areas in California that I can drive to.
My question is, from the research that other people have done in the area, is Sacramento a good "buy and hold" market to obtain a rental property? My analysis indicates that a property here would only have a rent-to-home value ratio of 0.5-0.6% and be either break-even on cash flow or slightly negative. This is of course not as ideal as other areas such as the midwest where home values are much lower and rent-to-home value ratios are considerably higher (1.5-2%). However, being that it's my first property, I'm very hesitant about buying a property in an area I don't know across the country, sight unseen. I envision a much greater growth and future appreciation in the Sacramento area, but am fearful of buying a property that is borderline cash flow negative.