Or even purchase something larger such as multi-family or commercial that provides better cash flow. 

Experience with Multi-State Taxation -  Do they have experience handling income from out-of-state properties and navigating California’s specific tax requirements for LLC members?

Multi-family units are particularly good for this, providing consistent rental income and reducing vacancy risks. 

However, you could look into a second multi-family in the meantime as long as you have a decent downpayment. 

That will give you the most income and when you house hack and it will be cheaper than a multi-family property. 

Is the bang worth the buck ? 

It took a little while, but when it popped up on the MLS I was well-prepared to submit an offer and even in a multi-offer scenario I was able to make my offer stand out (happy to go into how we did that if that'd be helpful)

When I had a secondary structure demolished a few years ago, I did discover the lot was zoned that I could rebuild another multi-family building on the lot if I wanted to.

I would look into multi family or doing BRRR's.

I am currently trying to get into my first multi-family deal.