I am considering rental properties, but in any relatively nice area in LA, a 800 SW ft apt will be at least $450k, which means I couldn't afford to buy it for cash. 

Demand for both affordable housing and investment properties has pushed property values much further past rental rate increases. 

I live in southern California where I still cannot afford much and was looking into out of state properties as I know I can buy multiple at once.I was wondering what you guys thought about this for a guy like me because I'm new to the whole business.

Some neighborhoods you can get up to $5,400 a month for 4 bedroom SFH's in somewhat affordable parts of the city like inland Carlsbad, Mission Valley, and Tierrasanta.Do you think Section 8 is worth the extra effort in terms of government red tape and delayed inspections versus house hacking a SFH and renting out each bedroom instead?

Anyone who can afford $1500/month rent can easily afford a $150-180k home.What are your taxes and insurance?

HUD will run a market and affordability test that must pass for approval.I recommend starting small if you like your tenants. 

I would have done it years ago if the affordable options were available back then.

A realtor doesn't want to spend time looking up $400K places if you can only afford a $200K house. 

However, that being said I really can't afford a 408k loan, as the Philly rental market really doesn't support high enough rents to cover a mortgage such a property. 

While we can afford it, it would definitely compromise being able to act on a true investment opportunity that may develop.