Rentals: Is Sacramento - or even California - worth it?

[David Zocchi]

This is my first post on the forum, though I've read most of the threads and I attend most of the webinars and listen to the podcast. Trying to get my brain fully around the many options for REI, and there's a lot to learn!

My goal for getting into real estate is to generate passive income that will allow me to do less consulting work. I already "quit" my job - or more accurately bought it - so I can set my own schedule and all that good stuff. It pays well, but requires travel and I'd like to be able to spend more time at home and be more selective about the projects I take.

With that in mind, I've looked around a bit and I'm having trouble convincing myself that I should be looking locally for rental property. CA taxes, the Sacramento market's price/rent ratios and some of the CA tenant rights all have me a bit scared off and thinking about looking into other markets. 

So, is it worth looking for rental properties locally? Are Nevada/Oregon/Arizona potentially better options?

Interested in what the folks on this forum have to say. I appreciate it!