I just ran a few figures through the MLS to give you an idea reg. the market in Salinas.
I checked the sales data of all sales within the last 60 days, that actually closed within that time frame in Salinas (within city limits).
We had 75 closed sales of which 45 sold for more than asking price, 4 at asking price and only 27 under asking price. The average list price was $180K, average sales price $185K.
This indicates multiple offers on most listings (that what I experience right now, too).

You haven't missed the boat, but I believe there should be a sense of urgency if you want to buy at today's low price levels.

(Unless the banks release a wave of their foreclosure inventory at once)

I selected 11 properties in Creekbridge of 4 bedrooms that have sold in the past 3 months. Average asking price was $265k; average selling price was $285k; average price/sq. ft. was $145. Rent is averaging $1895/mo. for a 4 br in this area. Go to http://www.Zilpy.com for great info about rental rates anywhere - good tool for landlords-to-be.
Looking at the Salinas market as a whole, there are 28 active listings at $220k or less with 3 or more bedrooms. The lowest is $95k. Those are some good options, although the market is still moving fast. Some areas are rough, and prices reflect that. My advice: buy in the nicest area you can afford if your plan is based on future appreciation.

Thanks Curt Abramson for the info.
So how much has the price increased as a result of this competitive bidding?
I'm looking for newer SFR in safe area where decent working family want to live in. How much do you think 200K can buy and house can rent for? I heard houses were/are bought for 190K (4bed 2bath) and rented for $1400 - $2000.
My investment goal is for long term appreciation, but I want to have as much cash flow as possible to cover the monthly expense. I'm ok if I don't make money monthly, but I definitely do not want make big loss every month.

Thanks

jmail, Curt Abramson from Bailey Properties here. You haven't missed the boat, although you can expect a very competitive bidding process for the low-end properties, including cash buyers and over asking price final costs for the best deals.
Good investment properties come in a variety of shapes and sizes, from condos and single family homes to multiplexes. Many investors focus on cash flow and condition more than specific areas. For single family homes, you might consider Creekbridge, which has many newer homes in a well-planned community setting. There are short sales and REO listings popping up there in the mid $200's to the mid $300's. Most are 4 bedrooms or more. If future appreciation is an important factor in your investment plan, location is critical in Salinas, as with most places.
If you don't have an agent you're working with and you'd like more information or would like to be set up with an automated search for properties that meet your criteria, please contact me via my website, noted below. Good luck to you!