BRRRR Strategy Southern California

[Blake Milliken]

Hello I have at least 40k of capital and I want to do my first BRRRR. I live outside Los Angelos. Ideally I would want to buy a duplex/triplex FHA Loan then do a live in rehab for a year on one unit.

Is this possible in Southern California? Is it even smart to buy for a rental in SoCal when the prices are so inflated? What markets is this possible in with only 40k of capital? 

Another Market I was looking into was Knoxville TN, I will have a friend going to college there and he can manage it, I would love some advice on this!

Thank you