My wife and I are starting to look in LA, but it feels insane and overpriced, with mostly speculation driving the market.

I do aggressive land speculation in affordable housing.

That is how a investor would view your property and why it is obvious you are simply parking cash on a speculative venture. 

In addition, when I close with 50% equity, I don't have to speculate on future appreciation (I've already got a bunch of equity at closing).

Isn't it going to appreciate for ever, or maybe not and you will lose half it's value.How much are you prepared to lose monthly to justify the risk of speculating on appreciation.Toss the dice and see what comes up.

@Dan Strandberg my mentor was/is a land speculator.

You want them to be prioritize your properties and tenants first, and not speculate about the best neighborhoods for your next acquisition. 

As suggested SFHs are table scraps in regards to generating income, they are best left to those speculating on appreciation and mortgage pay down in prep for full retirement in 30 years.Commercial investments should be your primary goal.

The mandarin area of Jacksonville has lower returns, but it may have some speculative area for appreciation.  

Even with tenant paying the 11+ years of a mortgage, the growth seems speculative and if the economy shrinks, we are stuck again.