I found making numbers work in most of CA a bit of a challenge. Home prices are simply too high. So I invested in DFW, Charlotte (NC), and Las Vegas where rent ratios are +1. Texas prices were the least bubble prone, rents are strong and the economy OK. Downside is property tax and insurance. Las Vegas over-corrected and finding a home was not difficult. Finding a tenant was a little harder as vacancy rates were higher. Charlotte is somewhere between the two but is a nice little earner. For out of state, the key is the property manager, which you need to find first. Condos are non-starters. SFHs, 3/2, +/-$100k seems to be a formula that offers solid returns IMO.