You don’t get CA level appreciation in Kansas City.Some areas are high crime so need make sure you understand the neighborhood you are investing in, like any city all locations are not equal.Very car centric city, mass transit is not widely used, people don’t walk, they drive outside of a few very walkable locations in heart of the city. 

This is my out of state investing and I am in California.

Role-playing.     . you paid $300k 10 years ago, it’s worth $660k, (so when you sell you net $600k to make math easy.)and your cpa determined that you owned zero land, so it’s all depreciatable. you owe 15% on the $300k gain plus 25% tax on $109k depreciation recapture, so you owe $70k in federal taxes, then California reaches out for another $30k?  

My property is in San Jose, CA and would be worth about $1M and the above insurance is at the same level as my homeowners and costs a little more (about 7% more).

I'm an Architect and MRED Grad and have entitled and permitted over 200 units across Bay Area and Norther California, ask me anything about SB9 or ADU design / permitting

california has had statewide rent control on mf units for ~5 years.My experience with rent control is that in the near term rents increase more than without rent control.

Your profile says you are from CA, are you a long distance investor or are you local?  

Quote from @Bruce Woodruff: Yes, you are right; that is true for California..

I think back on my HML days in Oakland CA..

@Blake Kirby I just finished the first half of a successful 1031 exchange for BP clients from California...the second fourplex closes early next week.