Quote from @David Young: My wife and I are new to this and are saving for our first property our goal is to start looking for properties in November 25, we have a couple questions, would it be wise to invest out of state for our first time investment (we do plan on physically going to see the properties to potentially invest in) ? 

My property tax is around $350 a year. 

Key points include:Security Deposits: In Indiana, there’s no legal cap on security deposits, but you must return the deposit (minus any valid deductions) within 45 days of the tenant vacating the property.Evictions: Follow the formal process carefully.

There are down payment programs for duplexes, i have not searched or tried to do a 3-4 unit property. 

This could work well if you’re looking for steady monthly returns and don’t mind managing tenants (or hiring a property manager).Selling could also make sense if you’d rather use the $500,000 to diversify into other investments, like buying multiple properties or even a short-term rental on the lake as you mentioned.

Without the high leverage you reduce the top source of return in CA RE which is achieve via the appreciation on a high leverage property.  

With a short sale, will the lender of the property pay for the commission of the buyers real estate agent?

They are not buy and hold forever type properties. 

It was my first property purchase, and ZERO regrets.

Does anyone have experience with buying rental or STR property there or have a connection there that I could speak to?