First-Time Investor in LA

[Max Grust]

I'm looking to invest in my first RE deal at age 26. I live in West LA and work in commercial real estate finance so have experience with analyzing deals. I'm interested in the buy, hold, and sell strategy with a cash flowing property. I will be partnering with 2-3 other people so our budget is ~$400K and we are looking at anything from a duplex to a fourplex. 

Not sure if an out of state (i.e Las Vegas, Phoenix, Kansas City) property for our investment is the correct decision or to stay local in Los Angeles. Also would preferably like to find an off-market deal so not sure how plausible that is with being out of state. Thanks