In one of my previous posts, I discussed the advantages of purchasing cash-flow positive property. I also cautioned against buying in declining markets, such as in California. California is a big place with multiple different cities. It has a population and GDP comparable to that of the entire country of Canada. I would not purchase anything in California myself due to low cap rates, low appreciation at present, and onerous state taxes.
However, there is a question as to whether people who have current investments in California should flee. I personally would, because I don’t like their tax system. But anyone in the position of already owning real estate in California should read the following excellent article:
https://www.biggerpockets.com/blog/should-real-estate-investors-leave-california?