An Oakland, California real estate investment fund is carving out a niche that might work in other areas with roughly similar demographics: Acquiring and turning around lower-cost single family houses in neighborhoods outside San Francisco with strong mass-transit connections to urban employment centers and good job-growth potentials.

But rather than flipping the houses it acquires and fixes up, McKinley Partners is renting them out for as long as five years in a two-step strategy – pocketing solid cash flow in the interim, and banking on a stronger sales market down the road.

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