there are ways to get around the highest and you also need to take into account the savings you will generally have on the purchase side when compared to other regions. 

From what I’ve heard, there are reputable local management companies in regions like San Antonio or Omaha that handle everything from screening tenants to arranging quick repairs.

     * House is a 2699 sq/ft Single Family Residence| 3 beds, 3 bathroom | Built in 1956 | NO HOA     * There is a chance I could pay only interests so I can start saving some cash for the incoming maintenance and annual payment equivalent to the 12 monthly payments (~$5,029.77 per year during the balloon period)The advantages I can identify in this deal for me are:* Lower interest compared with traditional loans* Lower down payment compared with the ones compared for traditional loans* House is technically ready to be rented (waiting for the inspection) * Forecast - 3 yr growth (appreciation) is expected to be 8.1 % (Bigger Pockets)The disadvantages I can identify: * I am still vulnerable to foreclosure if sellers don't make mortgage payments to the bank.* Refinancing issues at the end of the Balloon Payment?

Strong regional/PE owned tenants.

You can look into switching to a local credit union or portfolio lender, as they tend to be more flexible with regional policies.

Many insurance policies also require re-development within two years, a near impossible timeline in a region with the coastal commission, perhaps only second to Manhattan in terms of permitting and red tape.

I have a friend out of PA that sets homes in the tri-state region and I can recommend some manufacturers up your way but need to know more particulars of what you're looking for, as in basic ranch, one story/two story, etc...

Credit unions or smaller regional banks might be a better fit.

From what I read in The Economist, these Sun Belt regions often see steady population growth which can drive healthy rent appreciation.

Understanding the market enables you to spot good bargains and steer clear of potential loss-making regions.