In some markets in CA, there are only limited number of permits and you may have to wait over year to get an STR permit.

https://up.codes/viewer/california/ca-building-code-2022/cha... 

I am selling a property in CA with a pretty hefty gain (great!)

Cash is king and I see people make money on a deal and buy a car or spend it on their lifestyle - I did the opposite.

I’m aware of some (California-based) investor-friendly DSCR lenders who will only consider the NOI of the target property, and won’t consider your personal income or assets in underwriting.House hacking is an interesting (and tried-and-true!)

@Andrew Jessup I would suggest going into a land trust first that is owned by the LLC (not in California) and then that owned by your living trust. 

I live in Chicago and have investments in California and Illinois.

In CA:  I have a tenant who, all of a sudden is in a wheelchair. 

I live in the SF Bay Area and have decided to buy my first single-family home.I fully acknowledge and recognize that the SF Bay Area and California (in general) may have some of the worst cash flow numbers in the entire country.I've already traveled to cheaper Midwestern states to look at real estate opportunities, but have decided to invest here in the SF Bay Area as I'm purchasing with the intention of living in it first and foremost, and then renting it out sometime in the near future when I move overseas.I'm looking for anywhere in the Greater Bay Area/Northern California region (even Sacramento & Central Valley is okay) with better than average purchase price to rent ratio, and some appreciation (if possible). 

Hey Dan, I live in California but have got 12-doors in Detroit that have done extremely well both from a cash flow and appreciation perspective.