Is it good to buy a rental property in Merced,CA?

[Ramki D.]

I live in bay area (Dublin, 2hr drive to merced).I am planning to buy a rental property in merced,ca. This is my investment property.  I have visited merced 2 times in last one month. Some of my neighbors bought single family homes there( near merced college, aspire homes new construction)targetting for student rentals). I am not able to pull the trigger purely based on student rental population. I am considering Sacramento vs merced). Looking for suggestions on Which one is better to invest?

[Account Closed]

Alternatively, you could buy a larger house with a floor plan that allows you so divide it into 2 and then rent it to 2 families increasing your rental potential. With the right layout you can add internal walls & soundproof it. 

Buying a slightly larger house is not a whole lot of $$'s. Also look for lot sizes where you can add an ADU down the road. I would rather go this route than buy a smaller house just for 1 family.

You will not be able to divide utilities but you can bake that into the rent.