Cons of Landlording in CA

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I heard someone say land lording in California wasn't as good as other states and that it's more tenant friendly than landlord friendly. What are some cons about being a landlord here in CA?

[Will Barnard]

Originally posted by @Jeff Gates:

Originally posted by @Will Barnard:

Originally posted by @Jeff Gates:

I would not agree. Folks look in the wrong markets to buy. 

 I certainly respect one's right to disagree but how about telling us what you disagree with and why. The "folks buy in wrong markets" is such a general and unsubstantiated comment.

I don't see how anyone could disagree with the fact that CA landlord laws are much more in favor of the tenants than the landlords. That fact is pretty much common knowledge and certainly the biggest con to CA buy and hold (speaking of the residential market only of course).

 California has many markets where the rent is $3000 a month. What good is that if the purchase price is 1.3 million. 

Folks believe every California market is this way and many, many  are. I was one of them until about six years ago, I discovered many affordable markets.

If you carefully seek the right markets in California, you can buy a nice newer home at 200K and get a $1600 a month rent payment. The few California legal disadvantages are minor when you cash flow nicely.

 The original poster was asking about the cons of CA which I added to. You disagreed so I asked what exactly you disagreed about. Now I see this post and I am in agreement with you in part. There are certainly markets in CA that have lower price points, for example, Bakersfield, Fresno, Antelope valley, & other desert cities) however, you typically lag behind the average on appreciation and you are typically in not as nice of neighborhoods to obtain cash flow.

The part of your statement above that I disagree with is that you believe paying $200k for a home and getting $1600 in rent equates to great cash flow. It does not. That is well under a 1% rent to purchase ratio. By the time you factor all the expenses (not just the ones that come each month but also those that come over time - capital expenses, legal fees, evictions, loss to rent, repairs, advertising, etc.) you won't have any cash flow. Cash flow does not equal rent - PITI. Lastly, I don't consider the legal disadvantages to be minor, perhaps you should read this thread https://www.biggerpockets.com/forums/67/topics/649...

and tell me if you still think they are minor!