In my opinion, that could be a game changer for residential in the downtown and peripheral areas but the fortunes of Sac real estate in general will always be underpinned by government jobs.As for which market has more cash flow vs appreciation potential, it's highly neighborhood specific.

Prices were printed once a day, and if a stock was highly desirable or highly undesirable the price was what ever the seller could negotiate.

{EDIT to add} The tenant applicants are the ones where I see all kinds of undesirable traits.

If there's not a lot of competition, the investors aren't going to get a lot of cross traffic from buyers looking at the other houses; by the same token, if there's not a lot of competition and buyers are making offers, either the house or the price is undesirable.- As others have said above, ensuring that the buyer is well vetted is very important.

My standard operating procedure is to drive by the properties I may be interested in between 1am & 3am; this is when the undesirable issues are taking place.

Hi Loretta,It sounds like you may need to lower the price to make up for the undesirable aspects of the neighborhood.I'd be happy to help analyze your property as I'm close to Herndon.Good luck!

I also wanted to house hack a 4-plex in the phoenix area but they were hard to come by, too expensive, or in undesirable neighborhood.

I am biased but a 4 plex is Sac is a lot more exciting to me than a "turn key" investment in an undesirable location. 

@Johann Jells I always pull the bad or undesirable stuff and put it back the way I would like it if I was the person living there.

Have you had any feedback that full baths in basements are undesirable or a waste of money?