Personally, my primary residence has appreciated around 6% in market value and I live in Levittown. 

I personally would never invest somewhere that could outlaw rentals.

Yes I have known it to work because the owner is not a push over, enforces policy and can make it run good......however, do you have the right personality to do this, AND if you move out can you continue to have the house run smoothly with no one in charge.  

The challenge was balancing the relationship between landlord/tenant and a personal/friendly relationship.

Make sure your personality matches your path.  

I personally started in my local real estate market in Columbus Ohio.

Personally I like the Section 8 program when the property is located in a super poor area with a ton of blight and crime.

Balance data with personal priorities.

@Jason Weidmannit's only solid if:1) you pick a market that you can go to in person and build a team first, and 2) you recognize that RE is a long-term investment, and you may have to wait 5-10 years, or longer, before seeing ANY return. 

Personal finance is as much behavioral as it is math.