Do you like to do business with people trying to do a workaround?

The problem with rent by the room is you end up becoming a counselor or a people manager.

Do people put exercise equipment like treadmill or stationary bike in their mid term rentals?

I've heard too many horror stories about people that pay cash for a property because they think they are getting a deal.A moron of an owner could see they could get a much higher price if they just put in the exit signs (etc) and then sold to someone with a bank loan. 

People find the best schools and look for houses around that school.You should start with the state and then drill down.

You will probably find some people here with experience in or around where you wind up.

Pick a place where lots of people want to rent, the houses are cheap, and there's a chance for growth.

If you want to find people who will try to help you lose your money, telling them how much money you have and where you will be is a good way to start.You are limiting yourself way too much by focusing on LA, but with $2 million to burn you could likely find some good cash flow if you are paying cash, but you don't sound like the management type just from this.

I was hoping to see what other people have found success doing who are in the same situation, as from what I'm reading, there can be few different ways to handle it.

Staffing key people already there, front desk person, accounting person, all the third party vendors you need, all the training you need for your agents.All you do is recruit and sell.