Looking for LTR opportunities in SoCal. Good or Bad Idea?

[Harsh Chawla]

Hello,

I am a newbie in the REI world. My wife and I live in Irvine, CA and are looking to purchase our first rental property. We make ~450k per year and are mainly interested in investing in a property nearby. We're looking at a down payment of ~ $150k.

Since our goal is to cash flow eventually, I don't want to invest in a property in Irvine which has higher home prices and Mello-Roos.

Questions:

1. Which areas in Orange County or surrounding counties are primed for appreciation and have the ability to cash flow

2. What parameters should I be looking at when evaluating a market? Are there any particular sources that you like better than the others? Parameters that I have in mind are along the lines of HOA fees, school rating, etc.