I am a landlord as well as a real estate agent with five units in the Los Angeles area. Business is great! Real estate is still fairly high and so many high income families rent. There are many quality applicants. Sadly, because of the recent increase in foreclosures, more and more homeowners are becoming tenants. While this is awful for them, it is good for people who are landlords. It is difficult (generally speaking) to break even from the start in our market, but not impossible, especially if you have money down. My hope is to find another rental unit for my own purchase in this great buyer's market. I can search at the same time for you if you'd like. Feel free to email me for more specific assistance: I can guide you to the better areas and keep you informed about rent control, which is very important to be aware of as you decide where you'd like to buy.