We cannot afford to invest in our area (Southern California) so we are planning to look OOS.

I been told by few mortgage brokers in Ca what I need to show income for 2 years as W2.Can be law diferent in Ca and Il?

You might find that learning from local investors face to face leads you to invest right there in California without having to go out of state. 

I’m in “rural” California and I couldn’t build my rentals or my primary home for anywhere near what I can still buy them for.  

This will be my only property in CA.

They are becoming more and more common/popular in the Joshua Tree area of California where I am an active investor/VRBO operator. 

I'm using Loopnet to find deals and work the numbers, it's merely an exercise to get more comfortable running numbers:The "deal": http://www.loopnet.com/for-sale/ca/?

(You should read The 10X Rule if you haven't).And maybe one day you'll be the retired real estate investor at a retirement home who has a killer development deal for the 90-year-old civil engineer who never quit taking action either.well I am not 90  but I still do continuing ed on my mortgage bankers license even though I have not used it officially in 6 years and I keep my CA brokers license active even though I have not been there in 18 years  LOL.. its a pride thing.. along with I don't want to have to take the tests again.. 

Have not heard re CA. 

I'm a California transplant (moved here in 2009).