It can be, as long as you go in with eyes open and screen hard. The regulations get the attention, but tenant quality drives your returns far more than the rulebook does, and screening is where you control that. California is a tenant-friendly state, and the rules vary a lot by city, with Los Angeles County (including Long Beach) among the tougher spots. A contested eviction there is slow and expensive. One of our own contested evictions ran past two months of lost rent and a couple thousand dollars in costs, and in hindsight offering cash-for-keys to move things along would have been cheaper. Protect yourself before the lease is signed: - Run credit and background checks, and verify income and employment. - Get a prior landlord on the phone, not the applicant's mother or current employer. - Listen for the lukewarm answer. In a litigious state a past landlord often won't openly call a tenant bad, to avoid liability, so a non-committal response about renting to them again is itself the red flag. A few more things to weigh. California tends to appreciate more than most states but costs more to get into, which makes cash flow tougher; out-of-state rentals are usually easier to enter and cash flow better while appreciating less. Steer clear of rent-controlled areas, and know that rent control can be added later where it doesn't exist today. None of this is legal advice, so confirm your local landlord-tenant rules. Regulations alone wouldn't keep us out of California real estate for the long-term appreciation. They do change how you underwrite the deal.