This is an aside but seeing as you’re from CA, be aware that TX is weird about financing from out of state.

Me and my wife go back and forth between Orlando FL and Long Beach CA. Being

There may be limitations as to making changes and historic preservation requirements ca be very expensive.

AirBnB is a huge industry here in CA. Being

With CA being so big I am sure there is a deal to be made close to home but I will need to take a look at Memphis.

Oakland Ca being one for sure. 

I rent it as one property and it has done really well with larger groups of friends/families who like having their own kitchen, primary suite, living room, etc. but want to stay at the same property.I think you could probably find something in your range if you really wanted to go that route, but with CA being generally restrictive on STRs and your desire to be within 2-5 hours of LA, I would think buying another SFH or small multifamily in LA might be your best value for your time.

I own and have owned many many wa state properties and that's not the case.high tax states in my mind are TexasILeast coast generally west coast modest tax's  CA being one of the best with prop 13 . also like Indiana tax's ..

Water issues and mold ca be a nightmare especially in a rental due to liability issues.  

will CA be alot higher?