With distinct A, B, and C areas, there aren't any truly bad neighborhoods for investment.

In your case, if you have $100,000 on the sideline I don't know if I would necessarily invest all of the capital unless it is in at least a B neighborhood and play the long game, rather than invest in the more volatile markets and swing for the fences.

Now when I see the law AB 1482, it says single family home not owned by a corporation is exempted from rent control provided they give notice of exemption (and the line in CAR form says, tickmark Notice of Exemption for notice to be in effect which we did not)The property will come to market for rent in month of July.

That price point should be able to get you into a B grade rowhome with 3 plus bedrooms and often times more than 1 bath. 

A, B or C areas. 

I don't care if the value of the asset fluctuates as long as the area is poised to remain a B/C+.Single family not preferred.

We've ranked them all by Class A, B, C or D. 

A/B class are going to be negative cash flow unless you can find an amazing off market deal and/or put over 30% down with a 30 year note.

If you dig deeper though there is a stipulation in AB 2046 that says if the property is apart of a land trust you are exempt from owner occupancy

It's a B- class neighborhood.Apparently there is some dog pee odor and some bad scratches in 2 of the 3 bedrooms and water damaged next to the kitchen (which is tile).The bamboo flooring flows through all the rest of the house except the bathrooms and kitchens.Would would you suggest?