Before this he was a student with dreams of becoming a lawyer and he worked and bought a fourplex, living in one and renting the other three.

I am open to looking into other, less expensive markets in SoCal but can't go too far from San Diego since my wife is a student and I work here at the moment.Any recommendations for more affordable upcoming MFR markets that I should be looking at in SoCal?

Beware the sand states, they ebb and flow hardest and fastest in these swings, and be a student of this.

I've got a 3 bedroom house that I want to rent to graduate students.

Are they student housing?

Here are the numbers:Current value: $195,000Mortgage balance: $150,000P&I, taxes, insurance, HOA: $1,050/monthRental income: $1,600/month + 2% annual increaseAverage maintenance spending over 8 years: $100/monthLocal appreciation rate: 1.5%, very stableThe location is near a large university and hospital so there is a plentiful supply of responsible tenants (graduate students, residents, etc.).  

How about leasing to students?

By the time I was one of her students she owned multiple very large apartment complexes in the bay area, Mrs.

I think with a 4 bedroom it really appeals to larger families or college students renting together.

Although, you may want to find out if you have someone willing to hold your license, if you're not going to be doing it as a full-time profession.