Agree on the advice their are sharks out there that are very good praying on people with various scams each month a new one pops up so avoid the housing market right now .In the mean time invest in a index fund that follows a benchmark like a S&P 500 each month/week put more money in when you are at a age that father wisdom has visited make small moves into the housing market .

(Unfortunately, the investor fell for this gimmick and did NOT get their own 3rd party inspections, appraisals or even visit the properties they were buying, against our best efforts to encourage proper due diligence and follow our check list for their own protection.)So now some people are stuck with properties worth half what they paid (not all RWN members), with no renovation done, and constant repairs and vacancies. 

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

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

Investments from CA tech companies is driving job and population growth. 

Quote from @Steven Barr: Quote from @Jay Hinrichs: Never did one in GA .. my experience is in CA..

State politics scare me a little but the one time I visited, I really saw it as a jewel in the making.

There are many reasons that adding a single ADU in southern CA is a less than ideal RE investment (i will post a list at the end) but the negative initial equity is a primary reason as the initial negative equity position consumes the initial cash flow and can take many years to recover.As for converting your home to a rental….

I will give you the common-sense answer below, but this is California, where common sense doesn't exist.A mandatory evacuation is outside of your control, so you shouldn't suffer financially because of it.

For example, section 8 in California is not going to be the same as doing it in Ohio.