Selling our home for $140k net..what now?

[Hector Valles]

Should we buy or rent our next residence? We live in So Cal and want to start investing in real estate. Our goal is to buy and hold and start producing some cash flow. We are in our early 40's, so we are a little late to the game,  but want earn enough cash flow so it can replace our income within 5 to 7 years. Any and all input is welcome!