Some homes are 2 x 4 construction, like you'd see in Colorado or California. 

Having developed a majority of my career in CA the regulations and red tape for construction and development are intense. 

Prices a few years ago were based on expectations of (in addition to interest rates staying low): - Then current operating cost assumptions (like insurance cost expectations being flat)- A seeming disregard for record levels of new inventory / supply hitting the market- Extremely high inbound migration expectations which are likely to not be met, due to both natural disasters and the boomerang effect when people from California or the Northeast move to the American South and hate every minute of the humidity, the large and relentless swarm of insects, and the occasional hurricane. 

I was the HML who put the CA clients into title for 1k per house.. then countrywide or wells would refi them in about 90 to 120 days generally they could cover their lending costs and be positive cash flow 50 to 150 a month..

Hey Sarah, I'm a big advocate for self-managing even from out of state.I manage my 12-doors in Detroit and live in California.

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

We are open to investing locally however living in Orange County CA, I don't know if that is possible?  

I live in California, this is a bay area property.were not looking to move out of state and house hacking is less palatable when a duplex costs 1.6 million.

So true my Dad started a company in CA in 1980 called Cal Wrap the all inclusive DT had just come out and we only wrapped PRIVATE MORTGAGES  never bank mortgages.

California, New York, Texas, Florida, Illinois and followed by Tennessee.