Advice on where to start

[Felix Piper]

A little background first: wife and I have good jobs as professionals; live in the Los Angeles area; I have a CA real estate broker's license; Wife is w-2; I am self-employed; had a couple condos years ago, but did not enjoy the property management part; have been successfully investing in the stock market for a few years (even this year!); looking to diversify into real estate again, but not sure where to begin; should have about $300k to $400k to invest; here are the options we have been looking into:

1) Our top option would be if our landlord sells us the 4-plex we currently live in, but it will definitely not cash-flow. Had an idea of turning the garages into ADU's for extra income. Pros: possibly a good deal, since we're friends with the elderly landlord; could do less down with FHA, but payments would be double what we currently pay in rent (including the rent of other units) and would not cash flow; would have enough leftover to build the 1-bedroom ADU; Cons: no cash-flow;

2) Buy outside LA County, but still in California. Still with the idea of looking for a place to add an ADU to add value. Pros: better appreciation than other states; possibly positive cash flow; broker commissions; Cons: property management by others (added expense);

3) Buy outside CA. Pros: possibly could buy multiple or bigger property; better cash flow; Cons: property management; no commission; not familiar with areas;

I am mainly thinking out loud and jotted down some ideas. Any input would be helpful. Specially on good up and coming areas to invest in.

Thank you!