You need to check with your State, in Florida you will have to pay sales tax on any rental agreements of 6 months or less so check for any possible sales tax liability.

I have State farms on my main house & attached ADU, but since they are NOT issuing new policies in California, I have been unable to find an INS company willing to just provide INS for my rental.

I am new to real estate and based out of LA looking to learn more about out of state investing! 

Responses stating even a mediocre rental property deal will outperform REIT's is way off.

Any suggestions on areas in California or out of state to get started?

And if you invest out of state what are your sources of information to make those decisions?

If I wanted to get into real estate but had no clue where to start here is the first thing I would do. I’d find someone killing it and get them to show me the ropes by giving them value.

5 ways you can bring value...

What state are you looking to purchase your home in? 

This will help you get experience and save up some money as well.Finally, I recommend you invest in an area you can cashflow even if it is out of State.

They failed to file proper extensions with the state, and they failed to timely file returns.