AT WHAT POINT DO YOU GIVE UP ON LOCATION ?

[RICARDO RUIZ]

I live in So. California and was hoping to get a rental in my area by the end of the year but considering home prices and economy there is nothing that will make money. I am considering maybe out out state. I prefer to stay local since it will be my first rental but it looks futile. So the question is at what point does a newby start looking out of state ?