But for one, you're speculating (gambling) and in LA the properties would have to appreciate to freakish levels to let you retire.

You are essentially gambling with an ARM and that is not something you want to do.  

Otherwise, unless you know the area well, I'd say it's more of a gamble.

Although it's 30k under the list price, eventually someone might say yes.Are you saying that the average deal in California is either: 1) diamond in the rough, acquired by hard networking or luck, 2) requires appreciation to get a decent ROI (gambling?)

*The Golden State Warriors basketball arena is being built nearby—-which makes two pro sports stadiums within walking distance.

After listening to more bp I realize i am more gambling then running a business.

Best case you may only be able to gamble on appreciation.

Also, travel, hospitality, and gambling will be hit hard for the immediate future4.

We also need sports gambling...

In the meantime, my in-law blew/gambled away a good portion of the money that insurance had paid him.