Like you said, real estate "investors" in California have long ago dissociated themselves with metrics like cashflow or capitalization rate. They are only concerned with flipping their overpriced property to some greater fool. Becoming a landlord of a newly bought property no longer makes any economic sense in most parts of the countries.
As Douglas Duncan, chief economist of the Mortgage Bankers Association, puts it: "I'm going to rent for while."
http://www.kansascity.com/mld/kansascity/news/local/12026905.htm