When I started, I used a $64K HELOC, and today, I’ve grown it into a $3,000,000+ portfolio.That being said, BE EXTREMELY PICKY with your first property.

Keeping investor money safe in this environment requires extreme amounts of investigation. 

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.PM us if you’d like to discuss this logical approach in greater detail!

Its extremely important when running tighter margins like what you're talking about to focus on age of HVAC, water heater, appliances, roof, etc.

This can be extremely costly.We have a two step program has no waiting period at all and will end up being quite a bit cheaper then the 3 month waiting period on closing costs, rate and NO pre-payment penalty. 

California has extremely high home prices, Taxes and HOA's in some places.

The other extreme is you could be your own GC and price out the various trades you need and coordinate the schedules. 

Prices will be extremely high - I don't think most investors are buying in these areas unless you have a lot of money and plan to house hack.  

The amount of cash-flowing deals in your market is extremely low, so when you get one you should hold on to it as long as you can so you can reap the benefits of that LA appreciation especially if the property is in a good location. 

@Tom StevensonHELOC money is extremely expensive - if you buy something that is 100% financed, either entirely with the proceeds from the HELOC, or with HELOC money for the down payment and a conventional loan, you will lose money.