I would like to concentrate near where I've lived and worked for the last 15+ years - Southern Monmouth and Northern Ocean Counties in New Jersey providing the market is reasonable.  

(One of the relatives has an adjacent property)  Just started real estate classes, and I learned the mnemonic OCEAN.  

I find better returns renting in blue collar neighborhoods in Tally.I think Biggerpockets is a great resource and everyone on here is very helpful and open.

If I had your capital and purchasing power in San Diego (I currently live in Ocean Beach) I would buy a property with more potential.

Also, CA will fall into the ocean during the next big earthquake.  

I don't mean to go against the grain of those who are selling that idea - all I can say is that it did not work for me.So.......... back to taking seminars, buying cassette tapes and books - I wanted to learn everything I could about investing in real estate ---- so--I had to get money, working capital, and I needed to go on the cheap - A friend told me about cheap properties you could buy in Baltimore - houses for only $2-3,000 and many of them could be found at public auctions.After borrowing some money and getting some credit cards and a new job - one in sales - I was ready - ready to invest in cheap- junk properties in the City.And wouldn't you know it - I got lucky at my first auction and purchased a cheap house that was boarded up - Because of all those expensive seminars I enrolled in I WAS READY - prepared with my pry-bar, flash light, level, marble and probe - I decided to go to this building that was being auctioned the next day - I sort of removed some plywood and crawled through a window to take a look -Boy was I surprised - this place looked great - I later found out that the estate boarded it to keep squatters out.The next day - I was ready with my deposit and waiting for the auctioneer to start his melodious hypnotic chant - 5 bidders appeared but did not bid because they could not get it - I was the only bidder and got the house real cheap.Today as an auctioneer, investor and developer of commercial properties - if someone would ask my opinion on how to get started I would suggest ---Continue to study but learn how to cut through the BSGet a credit line Learn 20 creative financing techniques - no money down systems (that is none of your own money)Hang with a few successful investors and pick - pick - pick their brain*** Look at 50 houses in the area you intend to invest (not expensive, blue collar, mixed rental and home owner neighborhoods)When you are finished looking at 50 properties - you will be armed with knowledge that most agents and other investors don't have - knowledge of values -Keep a journal, put listings in it, write down everything the agent or owner says, keep a record of the cost per square foot - this will help determine values -Have agents send you expired listings - go knock on the door or send a letter to ask if they are still accepting offers on the property - Remember an expired listed is a property that failed to sell - the seller should still be motivated to sell. 

Conversely, we had our beach house at Ocean Park managed for 2 night minimum stays for 8 years by a local vacation rental manager.

@Jarodd Butler - It would appear blue like this once it tags the person.

Simply click on my name in blue then scroll down to REI Weal Builders and the web address of the group OR whichever LinkedIn group you're interested in.

I'm assuming that there are just hard working blue collar workers living in the area that have cheap housing and maybe I should market towards that group?