New member from Southern California looking for strategy advice

[Jeff Brys]

Hi BP!

I started listening to the podcast a few weeks ago and I have to say I'm hooked. The more I'm learning about REI, the more I think it's a good idea. But, I'm having trouble developing a strategy that makes the most sense to me. I think I'm interested in MFR as the rate of return seems much better. But, the MFR I can afford in LA are either in a warzone, or will require me to dump all my cash into it just to close the deal.

Here's some strategies I'm considering:

House hack a MFR in an up and coming neighborhood in NELA (Glassell Park, Highland Park, Cypress, Echo Park, etc) at a negative cash-flow (but still cost less than equivalent rent). Appreciation has been going bananas here the last few years, plus I've lived in these neighborhoods before and I like the vibe.

Invest in STR or Vacation Rentals. I was looking into Las Vegas as I have a friend who moved to LA and is successfully renting his 4bd home there. He has all kinds of contacts I could lean on to get me started and we could help each other out w/ management. However, new regulations look like a headache and it could be sitting vacant while I wait for approval from the city. I could possibly buy a condo all cash here so that may minimize vacancy expenses.

Purchase a MFR somewhere in the Inland Empire (looking at Corona or Riverside) or maybe even SFR or two to rent out. Only an hour and change drive to check on the place but may be too remote to manage ourselves. Paying a management company may eat up too much of the cash flow to make it worthwhile.

Invest out state. Maybe somewhere in the South or Midwest? Numbers seem attractive, but I've lived in So-cal all of my life so I really know nothing of other markets. Would definitely need a great remote ground team. Upside is I could likely afford several cash-flowing properties with the right financing. 

Looking for any and all input about the above. Also open to hearing about anything else I haven't yet considered.