California follows at 5.4%, with Illinois, Kentucky, and Michigan trailing behind.

Great if you want to add rentals or non owner occupied properties to your portfolio but not so great if you wanted that winter log home in big bear CA or Mammoth lakes, CA.The good news is you're from TN so you have no earned income tax from the state on wages only interest and dividends in certain cases so thats a pro right?

However, DSCR Loans are also strictly for business purpose only, so don't work for house hacking (can't live in any of the units) and if refinancing into DSCR, would have to have moved out and well documented a new residence if you go that routeAs an out-of-state investor from California, should I work with lenders in California, lenders in the Midwest where I’m investing, or does it not matter as long as they can lend?

Unfortunately I am in California so it makes it a little difficult.

Has anyone bought an investment property in the California Bay Area recently that could help strategize any ideas on how to move forward?

I have heard on various news channels that the powers-that-be in California are going to push for much higher density when they rebuild LA after the fires.

Andy Sirkin (fantastic legal team from SF) has a library of free online articles and a set of agreements to purchase, to help you on your way to become a Subject Mater Expert. https://andysirkin.com/article...Elizabeth and Christina (The Rental Girls) have done a great job pioneering the shared ownership (TIC's) model in Southern CA. 

I rented out my Indianapolis suburban home in 2019 when I moved back to California.

They're planning an event for passive investors in Southern California in the first quarter- you may look at their website and get on their mailing list. 

I live in California, but being the market it is, I want to invest outside.