Starting out... is the market to hot right now?

[Blake Lammers]

Hi, my name is Blake I'm 18 years old, and looking to get started in real estate... specifically rentals, Ive been thinking about house hacking with an FHA loan, since California is so expensive. Ive been learning and studying rental real estate for about 4 years now. It is something I have a passion for, I have been saving every penny I've made working 3 jobs while still going to school.

            When I first started out I wanted to do out of state rentals because I never really considered California to be an option, but the more I look into it I can see a possibility that California could work.... maybe... But from what I've read on BP, it seems like most people that invest in California are in it for appreciation not necessarily cash flow, is that true? Where I could invest and house hack around here would be Ontario, fontana, Bloomington, or San Bernardino areas but typically there are higher crime rates and with that, higher vacancy. I would love to hear some advice on what you would do in my shoes. I also have a few questions that I would like some clarification on.

1. Would house hacking work on a SFH? Could you rent out the rooms? After I move out after the first year of living there could I still continue to rent out the rooms? Or would I have to rent out the entire unit?

2. Is the market to hot right now?

3. Where do you see the housing market going in the next few years?

4. Would I be better off just to continue saving until prices go back down a little? I just don't want to waste valuable years waiting when I could be learning and taking action.

5. I would like to first start in California so I can learn the entire process while not being so far from home. Do you think that is smart or would I be wiser to buy a house out of state?