If your properties are all located in CA I would advise looking in states like IN, OH, FL, TN, OR, GA and a few other states depending on comfort zone.

If anyone could include what to look out for in a good deal and a bad deal

I'm imagining something more like add a wall, turn a bedroom into a kitchen-living on one side and a formal dining room into a bedroom on the other side, maybe add a half bath in each unit.

So one tenant pays their 50% in RentRedi and the other pays 50% in RentRedi and as long as it equals 100% at the end of the month, everything is good.

I live in the Las Vegas market and have investments and a real estate brokerage in Henderson.

Avoid common pitfalls like skipping due diligence, underestimating repairs, and overleveraging having reserves and a strong team is key.Good luck!

In my opinion, I like a cash asset, but they may be able to sell now, buy a smaller house for themselves, and a rental property or two in Texas.

I've worn three hats in the seller financing world (as a property buyer, as a property seller offering terms, and as an investor that buys seller financed note). 

I picked a mentor and a team to follow and the rest worked out

It seems like you have some very solid goals of multiple income streams, and a well calibrated risk tolerance.