I would like to start close to home as I plan to self manage the rental side of it.

Remember, the notion of amassing wealth without investing is a dangerous myth perpetuated by self-proclaimed experts.

If you had $50K in a Self direct IRA how would you leverage that to yield short and long term dividends? 

This is effectively legislation to open up the market to new prospects. 

One thing to consider is that in terms of wealth building and Kiyosaki's Cashflow Quadrant, owing a rental and doing work yourself is putting you in the self-employed quadrant, not Business Owner or Investor.I think there are a lot of factors stacked against California for long term rentals, and I think you know it too! 

A 1031 exchange doesn’t apply, but funding through a self-directed IRA can defer taxes, though profits from debt financing may trigger UBIT.To reduce taxes, consider forming an LLC for better expense deductions, offsetting gains with investment losses, or holding the property for 12+ months to qualify for lower long-term capital gains rates.This post does not create a CPA-Client relationship.

If you are making money flipping, your own project managers, brokerage, etc. you should be able to self fund a few per year also.

I was also considering the REI expo in February so maybe I'll see you there.You're a self-proclaimed novice but I think many other members of the community would agree that you're well on your way given your potential cashflowing rental and equity.You seem to have a strong position which would allow you to keep growing your portfolio in the next few years.I'd recommend diversifying your RE portfolio the same way you're diversifying with other investments (REITs, Stocks, bonds etc.).

If you own real estate in a self-directed qualified account, the 1031 exchange is unnecessary.

However, this is not really effective in the real world.