That would give me pause before buying rentals in CA or IL.I will be following this with great interest.

I currently live in San Diego, Ca. but have been looking in the midwest, mainly Iowa, Indiana and Ohio, for properties. 

Quote from @John Lee: Hi all,My name is John and I'm a recent college grad about to start a Masters (SF/San Jose Area home base in California).

Would appreciate any other good options, especially those with focus on California markets. 

we did this a lot pre 07  in that year Oregon WA and then CA made laws that had lots of teeth about dealing with those in foreclosure.. so we just stopped doing it risk was not worth it.I cant see how an individual can do this really..

This is how I would recommend doing it:First a caveat I am in Tampa, FL and do not know any rules or laws for CA or dealing with the permits for Joshua Tree.1.

Bill, thanks - Moved to CA.

If you're looking for strong cash flow, the Midwest—places like Ohio or Detroit—can be great options due to lower property prices and higher rent-to-price ratios.On the other hand, higher appreciation markets, such as California, come with higher entry costs but often provide significant equity growth, even in the short term, if you buy wisely.If you're considering short-term rentals (STRs), your focus should be on factors like occupancy rates, average nightly rates, and regulations in the area.

I’m in CA also and paid cap gains on huge profits to the tune of 28%, which included CA state cap gains.

Here’s my perspective based on personal experience.For some context, I’ve been investing in real estate since 2019, primarily in Detroit, while living in California.