Too much regulation. 

As someone suggested allowing pets will also increase your applicant pool.You may find more people willing to pay the already established prices for allowing pets.

There are new developments around 200 to 300 K range with rental prices around 1600.I am curious if anyone has any expertise in this area and or have any properties that they have established there.Thankyou 

If you are going to self-manage, make sure you know the rules/regulations.

I am currently in the San Diego area and looking to begin investing in rental properties in the near future but my wife and I will most likely wind up moving somewhere with a less regulated/restricted and more affordable market.

Do it the right way and you'll never have to worry about the state regulators or angry family members coming after you.Good luck!

@Patrick Britton,As Jay mentioned, most private note buyers want the note to have come from the purchase of a property.So, there's a couple routes to explore ...First, if you own the property in your own name, establish a business entity structure (consult your financial / estate planning expert(s)) and sell the property to an LLC in that structure.

To that end, eviction laws vary by state and violating them can be costly, so it pays to do your research on state regulations.

Read the local regulations and put the burden on them. 

My wife and I are about to close on a 4plex (2 - 2/2, 1-4/2, 1/1) that has an established AirBnB superhost managing the building.