@Russell Brazil I can't speak for Vegas much since I'm not there anymore, I find it likely that it'll be a highly volatile market since it's main source of income (tourism) has basically been turned off.

Property tax in CA is an already low ~1%, then once you factor in Prop 13 tax advantages, CA has some of the lowest effective property tax rates in the nation.San Diego appreciation is in both price and rents, and has exceeded inflation and national averages going on for decades now (with some volatility in between), so you will likely do better long term on both cash flow and equity ... factor that in with the reduced risk and costs of staying local where you can assess and control your investments, and you almost certainly will do better local so long as you don't over extend and have to sell in panic or give it back to the bank.

Real estate markets can get scary with a change of office and, considering the volatility in this year's campaign, it's safe to say there could be some upheaval in the financial world post-election.

I imagine yields will level out somewhere that compensates owners for 1) the cost of property management, and 2) revenue volatility (more on this below)- We will start to see 2 things happening in vacation markets where risk adjusted yield is higher than it “should” be:1) New entrants will pop up, increasing supply and lowering yield in markets with low barriers to entry for most investors regardless of when they purchased. 

Yes, market is volatile, interest rates are fluctuating, but the fact that we can't neglect is that banks are more regulated, lending practices are stricter, and the housing market is not based on a pile of risky mortgages. 

Sure there will be volatility, as is the human experience and the markets we love to screw with.But, hear me out:- AI and robotics are leveling up every day it seems.

Now run the same exercise for the principal paydown and factor in some cash flow / tax benefits on the side.You cannot get returns anywhere near this in the stock market or any other alternative with such certainty and low volatility.

Either way seems to me there are plenty of other investment opportunities that won't be as volatile. 

And tenants in this price range are so much more volatile than say, $1,000 a month tenants.  

I would say if you do end up deciding to buy, buy assets (and in markets) that aren't so volatile.