Going to be in San Pedro LA, CA for at least 3 years. Should I rent or buy?

[Josh P.]

My wife and I have been renting in the area for 6 months. (subletting for cheap)

But now we both have jobs and we figure its time for our own space. We looked around and found a a place we love that rents for $1,375 which is more than we've ever spent on rent, but our real estate back home is doing exceptionally well so I figure we should spend a little on quality of life. We're pretty excited to move in, but that rent amount got me thinking just today:

I don't really want to spend 300k on a house here in Pedro, because for that dough I could buy a whole lot of income property where I'm from in Texas, but what about one of these short sale condos around here that seem to be going for around 120k?

I figure HOA dues property taxes, interest and insurance are money down the drain from an investing standpoint, but if we're going to be here anyway for at least three years, at what point do we say enough is enough with the renting and try to get into something that probably would never sell for less?

How hard is it to sell a condo if you buy one low?