I'd argue that the whole darn SoCal coast already is or is rapidly becoming "gentrified" ... the population may not be growing exponentially, but the net worth of the population sure as heck is, and those high net worth individuals and businesses create 2nd order wealth in their employees and services demanded (you may disagree).

Many pepole will disagree with me, However generally where to invest isn't as important as specifically what to invest in.

I would usually disagree with purchasing negative cash flowing property but I can see what @Bob Bowling is saying.  

We may be disagreeing over different things.

@Ray Herrell, I disagree, if they clog the toilet it's their fault, I have numbers for plumbers in case they need them.

I disagree that the property management company takes all the profits, but I’m not sure who Bruce has used in the past.  

I had saved up for my first couple of properties that were paid cash for (under $30k pigs) but it gave me an upper hand later as i could use them as a collateral to obtain a line of credit from a local bank. actually i was quite amazed how easy it was once i showed them i had some skin in the game and experience as a investor. in your situation, once you buy your triplex, you'll start getting equity with each mortgage payment as well as experience as a landlord of the other two units and a real estate investor. on a side note, as much as many say that it is possible to make money in RE without much money, i disagree (sorry Brandon T), you will need money for the down payment, whatever small it is, the closing costs, and repairs (there are always repairs, always). dont get discouraged, keep learning (the podcasts are amazing, start from show 1!!!)

@Bryan Case, I am going to disagree with Curt on this. 

I disagree. 

West of Cottage Grove is too close to the infamous housing project all the gangs call O Block and some may disagree but I highly doubt will ever be a nice area.