If you are serious about purchasing rental property for a long term investment then I would advise you to broaden your horizons and define your objectives. If your objectives are appreciation then yes some of the areas and types of homes you mentioned are not bad ideas.
If your goal is cash flow then the areas you mentioned are going to be challenging unless you have a large downpayment. There are easier objectives for cash flow. For example if you want a 9% yield you can invest in rentals with many groups. For instance the Norris Group has a 9% yield on Inland Empire homes but it is an 8 year committment. Locking up a 9% yield for 8 years is questionable but should work out okay for a few years considering what savings rates are today. However in a few years it may not be great.
I cannot stress enough how much better out of state rentals are if you are looking for cash flow. Appreciation wise not good at all. However getting 15% cash on cash is possible in the midwest.
Similarly places like Temecula offered very strong opportunities in 2008 and early 2009 but those have been mostly snapped up. I am regretting not following through with an investment purchase out there 2 years ago. Our man on the ground Temeculaguy has great insights to homes out there and investors swarmed the area.
So in the end I am not trying to sway you. Purchasing a condo near UCSD or a small SFR in an outer area may be okay depending on what our goals are. There are alternatives to consider.
