Examine your goals for this investment. Are you looking for long-term appreciation, positive, even or negative cash flow, tax benefits, etc., etc., etc.?
When looking for an investment property, I would suggest you define even better the objectives that you're looking for. For example, no pool, under 2000 sq feet...whatever it is that is more attractive to the tenant market. But Elk Grove might be a good area to look, just determine more specific objectives if it's for a rental.
Areas with prices still high with comparable lighter foreclosure activity are mid-town, East Sac, Arden, Carmichael, Fair Oaks, Folsom and Granite Bay. - Lovely towns and areas, investment in one of these is for future appreciation not current cash flow.