Southern California investors, please advise.

[Jacob Prelle]

I'm ready to make a purchase and prefer to keep it close to home in southern California. Keeping in mind the cities where prices are high, the demographics undesirable, or new businesses or homes being built etc., what areas are worth (or not worth) an investment property? Around 600K 4,3, or 2 unit properties only Investment property (live in one unit, rent others out) I'd prefer 3.5% FHA to free up more cash for a second investment property in 6 to 12 months. I'm particularly wondering about San Bernardino, High Desert area, Riverside, N. San Diego, Palm Springs area. But i'm open to any place in So Cal.

[Brendon Woirhaye]

That question is a bit too broad.  As a Southern California investor, keep in mind that properties are expensive in most areas that are desirable - you aren't likely to find the opportunities for properties that meet those "1% rule" or "2% rule" that you'll hear investors in some other states talking about.

My personal preference would be to find a nearby property to start learning the ropes with before you go for something more distant, and that would help you draw a circle around your home to allow you to start digging into neighborhoods and getting a feel for prices.  Use zillow or redfin to "browse" recent sales or for sale properties to also give you a better idea about sale prices, or zillow/apartments.com/zumper/etc to get an idea of prevailing rents in those areas.

Try to find a local landlord / apartment owner / real estate investor club where you can talk with others about where they are investing in the local area.

Find an agent experienced in working with small property investors.