One block over is Multi-million mansions.

Renting out those other units affords you the luxury of living for free, but it shouldn't be mandatory to make ends meet.On top of your down payment, you should have at least $5-$15k in an emergency fund set aside.

Affordable housing is a need in this market, just as much as luxury homes.

I personally know people who bought brand new, multi-million dollar, beautiful luxury homes, only to have serious foundation settling over the first 5-10 years of ownership (and the repair bill was in the hundreds of thousands!).

In fact, I'm currently living in a luxury STR house hack.

In Los Angeles, there is a high demand for real estate, especially in the luxury market.

You don't and won't have enough money to get too luxurious with this if you're strictly funding it yourself. 30% above median prices is whatever, that doesn't really say much.

Be prepared and if you have overextended yourself, start cutting out the luxury items and vacation plans and prepare to hunker down.  

You will also not have the luxury of spreading major CAPEX expenses and some maintenance expenses across all units (one roof, one electrical system, one lawn, one parking lot, one HVAC system, etc)- When you buy the portfolio, there is a pretty good chance that at some point you will want to sell off the lower-performing assets in the portfolio or the assets that cause a headache.

I know people who have bought new, beautiful, multi-million dollar, "turn key" luxury homes only to have to deal with major problems in the first few years of ownership.Obviously, old houses come with their own issues (asbestos, LBP, funky floorplans, and the all time most reprehensible sin against humankind: the carpeted bathroom) …but, if you know how to identify and manage these issues, they’re usually things that can be fixed…plus, there’s the satisfaction of saving a cool old house!