My wife checks almost daily and over the years has acquired a very good sense of what the market will bear in our area.

This is a bit of a random question, not that I would do this, but I was wondering is anyone has ever purchased an expensive cabin (close to 1mil) near some place like Big Bear or some national park, and listed it on AirBNB with property management running it throughout the year, not for the purposes of making a cash flowing property (of course if it did that would be great), but for the purposes of being able to own a cabin cheaper than just owning one and letting it collect dust while you do not use it. 

You eventually signed off on all inspection contingencies so, to me, you bear all liability but, fortunately, i'm just some guy with an opinion that doesn't matter. 

I believe that Tenants have the right to keep and bear arms.

Since you're going to stay in your studio, and keep paying rent, none of that has any bearing on anything to do with BRRRR or anything else.

It's like planting a tree and waiting for it to bear fruit.You need patience to see your investments grow and achieve your financial goals.

Initially was thinking closer to LA … Palm Springs, Big bear, Joshua tree etc.

I think you would bear too much market risk with rates.

I've attended one called Bears and Deals that is focused on Multifamily that is really fun. 

@Richard Purdy put at least some of it into an interest bearing account so you have a cushion. 5% is easily achievable with many savings banks.