I work with a lot of househackers and they're typically on the 12 month cycle, rinse and repeat.While the proposition of acquiring an investment property outside of your market in a "landlord friendly" state may sound appealing, i would recommend you stay local for now and househack another couple of properties over the next few years until you've got some more time / experience under your belt.you would need a management company to cover your property that is outside of your market which would not only take 8-10% of your gross it would also leave you a bit vulnerable to a property management company that you A.)know nothing about and B.)you won't have the experience or cashflow or proximity to deal with any headaches that may arise.i would recommend staying local and househacking your way along for now and then maybe hire a local property management company initially to work with your current/local properties to get a taste of what to expect if and when you begin investing outside of your market.

@Pearse CafieroWhen starting out with your first rental property in Los Angeles, I’d recommend exploring FHA loans or private lending options to get your foot in the door.

My recommendation is before chasing all these real estate deals is to go earn and save some money so when a good deal comes a long you can take action and move on it. 

I'd recommend reading these articles on BP for answers to all your questions!

It's also nice that they have their own recommended insurer, those rates are much lower then what I would pay up in the northeast. 

I definitely don't recommend renting to a friend.

I have never pulled a permit for a water heater swap, know no one that has ever pulled a permit for a water heater swap, ever seen or heard about one getting red tagged for no permit, and have never had a plumber recommend getting a permit.

If you're strictly seeking off-market deals, I recommend connecting with and working with a reliable/resourceful wholesaler instead of a real estate agent.

It's obviously not a ton of money but how do you guys recommend me investing with it?

I’d recommend reaching out to mortgage brokers who specialize in investor loans—they often have access to niche lenders.All the best!