Advice on next step in high cost of living area CA

[Kim Chong]

I am looking to invest in the Los Angeles and possibly Orange County California area. I have 1 paid off single family rental home managed by a property manager. After taxes and funding investment accounts, I have $200k per year leftover to invest. I have a busy job and like to keep my investments as passive as possible but like the tax benefits of owning real estate. I am currently not interested in out of state investing. I am not sure what my next step would be. Should I stick with another SFH or go up to multi-family? I'm concerned about rent control and policy changes overall favoring tenants now in regards to multi-family rentals but I'm not sure if that is something I should be concerned about.