Just getting started

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I'm 24 and just looking to venture out into the real estate market. I'm interested in getting into some rental properties in southern California where I'm currently living.

I know the market may still have another 6 months to a year of instability before things start to flatten out (does this timeframe sound reasonable?). I plan on waiting around until then unless I find a good pre-foreclosure or some other very motivated seller.

Anyway, I know it would be extremely hard or impossible to have positive cash flow with a conventional mortgage on a rental property in SoCal. I recently learned about option ARMs though. I was wondering what you guys think about these? If I could do an option ARM for the next 5 years lets say, I would be able to have positive cash flow each month and assume I'd catch appreciation after this lull in the market some years from now to get some equity later on for a sale.

What do you think?