I am looking at possibly investing there again as the Atlanta market is saturated.

Are they doing everything possible to expose properties to the broadest possible market?

Thats why I've been taking on a strategy with buying as much as possible as fast as possible, and stop the bleeding later.

I’d recommend connecting with local property managers and agents as soon as possible—agents can help you identify deals that fit your BRRRR criteria, and property managers can give insight into rental demand and market rents.

There are to many variables in play.  

With that being said, I am trying to find out if new construction is even possible and what it takes to build a small multifamily in the LA area. 

That will also play into it.

If this is the case, you want as much money as possible in taxable and Roth assets so that you don't pass assets on that create tax burdens for your kids.  

If you are fully committed to purchasing rather than renting, I would suggest to try and get into the best area with the best schools you possibly can.

Ask he/she legal questions surrounding the security deposit before making any rash decisions.IMO - Proceed with the eviction process as soon as legally possible.