My story is very similar to FSD. My first purchase was a condo in Crown Point and I lived there many years before buying a larger home and simply keeping the condo as a rental. Then I ended up moving out of the larger home and kept that as a rental as well. Along the way I bought a condo in Mission Valley strictly as a rental and that worked out okay for a few years and let it go in 07. I don’t do great on the rentals but do not get squashed either. I keep them more for in laws to live in many years down the road or maybe even kids. Who knows. My wife is pretty bearish and wants to sell them because she thinks a bigger crash ala arrayas posts may happen. We will see.

As for trying to do it for cash flow or appreciation like you are thinking I would agree that out of Cali you will have better opportunities but DO YOUR HOMEWORK. Lots of pitfalls and the guys who make money on this do a heck of alot of demographic studies for where they will buy.