LA is a bit different in terms of the legal system (Napoleonic Law vs English Common Law).

Since I am new, I do not have excess capital to purchase expensive properties like those seen closer to LA. I

Hey Angela, I'm a local commercial agent in LA. I

I rent it as one property and it has done really well with larger groups of friends/families who like having their own kitchen, primary suite, living room, etc. but want to stay at the same property.I think you could probably find something in your range if you really wanted to go that route, but with CA being generally restrictive on STRs and your desire to be within 2-5 hours of LA, I would think buying another SFH or small multifamily in LA might be your best value for your time.

LA is a 5% initial penalty and 1% a month, so first year is a 17% return. 

@Ray Lai Thanks!

I see you're from LA! I

LA is unique in the sense that the cap rates and cash on cash is very low so most of the times unless you get a unicorn you will be buy to hold for appreciation.

Its LA is expensive with low cap rates but yet people are buying here so just want to find a source I can learn more about the area.

I have relatives in OC (Irvine/LA) - is that where you're also looking to invest?