Invest in multifamily or renovate current rentals?

[Laura Jackson]

Hi Biggerpockets forum! I am in real need of some advice on what to do next, and would greatly appreciate investors chiming in.
After spending the last couple of years paying off debt, I am debt-free minus my two rental properties. I have a 6-month emergency fund and will soon have an additional $35,000 saved. I want to invest in multifamily real estate but I am wondering which path to take. I would love to buy a 2-4plex, live in one, and lease the other unit(s), but in Los Angeles, where I live, it would cost $1 - $1.2 million to buy in a safe neighborhood. I would need an income of $220,000 to qualify, while I am earning half of that at the moment. 

I have many questions but will start with these two:

1) I’ve read the Long Distance Investing book by Robert Greene, an awesome book but still, I prefer to keep my investments local. Can I buy in LA without hundreds of thousands of dollars and without equity partners or must I invest in other markets?

2) I currently have two rental properties that have the potential of cash flowing $1,200 - $1,500 more per month, but I must first invest $85,000 in renovating/upgrading them. Is it the best move to do the renovations now before jumping to buying multifamily?
Cash flow is my main goal. My plan is to Invest in class A/B 2-4 unit buildings to hold long-term, and I am eager to finally get started!

Thank you for reading this far. Here is some information about my two rental properties and my RE experience/ background that may be helpful to know:

Rental #1

Location: Los Angeles

Purchased in 2015I have a house that I am renting out. It is cash flowing $500 after all expenses. If it were leased at the market rate the monthly cash flow would be $900. If I were to invest $77,000 in renovating it, I estimate that it would cash flow $1200 per month. This would require the house to be vacant for 2-3 months which will cost me an additional $9,000 in holding cost. Current equity is $400,000.

Rental #2

Location: Dallas

Purchased in 2008.

I have a townhouse that breaks even ($0 cash flow, $0 loss). I have $160,000 in equity. It could use a minor facelift which would cost $8,000. I may be able to get another $150 - $300 once done.

I am a Property Manager

I am an on-site property manager so I do not have any housing costs. I manage 100 doors for a property management company.

I have done Flips

I’ve flipped two properties in 2017. I learned so much but I only want to buy and hold now.

I am a RE Broker

I also have my real estate broker's license. I obtained it for RE investing only. 

I’m a W2 employee too

I am a w2 employee. I have a main 9-5 job in addition to being a part-time property manager. 

In advance, thank you for providing any valuable suggestions you may have to help me kickstart my real estate multifamily investing. I am eager to grow my portfolio of investment properties.