@John PowellMike is dead on when in his description of the Kansas city area.

I think the stock market is much more at risk than the housing market.

And just as many that specialize in turn key sales .I would not get to focused on one area until you have explored much of the US markets first.things to consider when owning rentals of course is the city health and demographics and long term projections.. and the other big issue especially with older rental stock is long term Capital expenditures to keep said homes in decent shape.. there is a sweet spot for rentals IE sq ft of homes and bed baths..

It sounds like you and I both came to the same dead end. 

I am dead set on creating passive income and wealth through rental properties, and I'd really like to be able to do this where I live (Southern California).  

I know the stock market is one place, but looking for something more stable.

Just curious - I was under the impression that if you sell an "investment" (real estate, stocks, etc.) in less than one year you pay a higher capital gains rate than if you sold it after one year. 

Housing stock in low in our area.

On top of that, my husband invests most of his paycheck into 20% discounted UPS stock, life insurance is extremely cheap ($400k is the max but ~$40/mo), and he'll get a pretty nice pension after 30 yrs (but we don't bank on this considering it is a pension).

You sometimes find better deals in the dead of winter.