I know many investors that left SoCal after decades of investing because they tired of the regulations and lawsuits.

You wouldn't want to share a beer with most of them especially the litigious one, he might serve you a lawsuit afterward.  

Before the webinar I had read a local article about a law suit a restaurant was contending with because their parking lot had a more than a 2% grade.

You live on the main floor and rent out the in-law suite. 

He even won a lawsuit against the state where 2 pitbulls killed a woman.

Plus any harm he does in the future may come back in a lawsuit against you.

I also learned that it may be good to first put the building ownership in an LLC, for protection from potential lawsuits, and also to make the transfer of ownership easier.  

An LLC is designed for asset protection in the event there was a law suit stemming from the property.

Having the rental in an entity (LLC, corporation, NOT a land trust) might limit the assets that could be attached by the lawsuit to the assets that belong to the entity.

(Perfect house would be something with an in-law suite or basement with a separate entrance/kitchen for myself to live in and the tenants to live in the main part)         3) Ideally a Live In-Fix and Flip but would be okay with something more turn key if the numbers worked  4) Hoping to stay under 500kIs something like this unrealistic in your eyes considering the market currently and lack of inventory?