I am from California, but lived in Peachtree City, Georgia last year (renting), and currently live in Germany as an Au Pair.

Without the high leverage you reduce the top source of return in CA RE which is achieve via the appreciation on a high leverage property.  

whether it's the higher than average property taxes of TX or the CA clawback. 

im in Orange County CA and there is a huge market here for room by room rentals here. i've been doing this for quite some time (over a decade now), and it certainly has its pro's and cons. my advice if you go about this is make sure you do proper vetting before moving someone in... not only for financials/ credit-worthiness, but also for temperament and expectations in a co-living space. we ask a lot of questions like "how do you handle conflict?"

I have a client from CA that I buy properties for in the Kingman AZ to Laughlin NV corridor and yeah.

If you live in CA, NY, Boston etc - the financial difference is big enough.Investing in your home town is always best, you have the home-field advantage and you can buy, rehab and manage a lot more efficiently.

Hi, I bought a home last year in Lancaster, California.

@Gregory Schwartz Believe California, Colorado, Illinois, Maryland, New Jersey, Rhode Island, and Virginia have similar laws.

North Carolina, Florida and Tennessee round out the five leading growth states.And, for the fifth year in a row, California reflected the largest net loss of one-way movers, according to the data.

There are places that are tenant friendly and then there is California which is at another level completely.Have you thought about buying elsewhere?