Thanks for the input Temeculaguy and Econprof. I have to study the rental market/vacancies in the parts of the Inland Empire and Vegas that I’m looking at. I’m not familar with the loss of the low end renters you are talking about. What about <$100k SFR's in Moreno Valley?
Las Vegas right now you can buy for less than it costs to build houses. $80k for a newer blt sfr. Yes it seems to be a 100% tourist reliant area and that's a worry. But I think for the next 10-20-30+ years Las Vegas and Phoenix will continue to get a outflow of people priced out of California & baby boomers retiring from cold states. The same dynamics will happen again. San Diego for example, even after the bust, is STILL not affordable. If you are below $400k for a sfr you are STILL in a dumpy neighborhood with below average schools. Forget about the Bay Area, OC or LA. That will always drive families to look to neighboring states and to look at the inland empire.
Phoenix is another area you can buy rental houses for less than it costs to build. For 1/2 or 1/3 the price they were selling at the peak. Both Phoenix and LV are much more business friendly than CA.
I've been hearing for 20 years how the anti business climate and taxes of of CA is going to drive out all the people and businesses out. It still hasn't happend. The state has too much going for it with climate, scenery, closest U.S. proximity to the growing Asian powers, Silicon Valley, Hollywood, etc...
The lower end SFR prices of San Diego have also stabilized if not risen in the past 12 mos. But the numbers are just not good anywhere in SD for anything. You are buying with the "hope" of future appreciation, which to me is a debatable reason to buy.
