If these markets are this saturated, I think that starting there is not a good idea.I wanted to ask to any investor or realtor experienced on these areas if my thoughts have some fundamental truth?

You want to diversify your investments and are going to pick individual companies you truly understand, at a fundamental level, and are going to buy shares of those companies. 

We have record low unemployment, an influx of Chinese and international buyers, 40K homeless (the population of a small city unto itself), overcrowding and a challenging bureaucratic building process that inhibits developers from building fast enough to meet demand.I caution against relying on "gut" or "speculative" opinion-based outlooks and stick to the fundamentals.

That ship has sailed and the market is in the early stages of fundamentally changing.

Whether you choose to do REI or own a pizza place, you need to understand basic business fundamentals to be successful, such as cash flow, sales, and accounting.

The best place to start is by reading books and having a fundamental knowledge of how to evaluate and acquire your type of property, buy and holds. 

Hi,I'm a newbie investor from California who's looking to invest out of state because the fundamentals in California is out of whack.

@Scott NicholsI’m not an active note investor, but I’d highly recommend checking out Gary Johnston’s financial calculator class before dropping $20k in a mentoring program.Not only will you get a tremendous deal of confidence in the fundamentals of discounting notes and running the calculations, but you’ll also get great strategies for buying notes as a side-benefit from learning to creatively structure debt.

Nevertheless, teaching kids fundamentals about money is one of the most important things they can learn.

They will sit on cash (Charlie Munger says you need to sit on $10 million for when that deal comes along - Berkshire's philosophy is to sit on $72 million) and when they see an opportunity for an undervalued asset/company with good fundamentals, they will go all in, and then sit on their hands and let it play out while looking for the next deal.