You absolutely do not make any money until you either sell the property for more than you bought it for or you recoup the money you spent in rental income of some other way.

The successful people I do see in those areas are typically self managing/live in the area and have spent time and due diligence interviewing and building their own local team instead of relying on others. 

@Evan Snyder I just spent 4.5 years in Los angeles, the San Fernando Valley and call definitely relate to the price and cashflow hurdles of California.

I spent the money saved on my first property which wasn't my primary residence but a rental.  

I spent a few days driving by potentials, researched them, then narrowed my list to 7 properties.

I spent most of my 20's on active duty in the US military and made my first home purchase during that time.

If you want to buy an investment property and you spent your source of cash on your primary residence, then that probably wasn't the best move. 

I live in Atlanta, GA and purchased a 1 bedroom condo in Dec 2016 for $328,000 with 20% down and spent somewhere around $30k in renovations.

A few years ago I saw someone recommended on here by a few people, most who had never worked with them, and a quick search revealed that they had spent time in prison for dealing drugs. 

I spent some time in your city a few years back when I was stationed at Riley.