Maybe you can start out the next phase by beginning an actual search for properties.

Just to the South, the Expo Line Phase II is opening next year and will provide a 20 minute stress free ride to Santa Monica, which is a game changer IMHO because there is no other affordable areas near SM that can come close to that commute. 

If you can limit your downside risk during this "learning phase", you have a better chance of making it through to the "productive phase" where you have the knowledge, connections, and skills to (fairly) consistently make money in real estate.

Actually I would add that on the Modern Portfolio Theory issue, to really understand the way in which it can be undermined one should read the philosopher David Hume and the philosopher of science Karl Popper - or at least google the term "the problem of induction."

.* I have contractor ready and he said he will pull all permits,etc. doing a phased contract where we make payments based on milestones* I am looking into getting insurance to be safe for property for theft,etc. but its in a decent area so not as worried* All cash deal and we have cash on hand so not worried about that.* He is giving me a contract and wants a cashiers check of 5K with contract signing.

But that allowance phase out if your AGI (married or not) goes over $100K and is gone if your AGI is over $150K.

They will escrow the rehab money and release it upon completion of phases of rehab.

I am starting the research phase now so I will be able to act when the time is right.

It will cost you less, it gets you more familiar with all phases of contractors in your area and you are not relying on someone else to be your eyes and ears.

Hi BP, My name is Hicham new at real estates. i am in the phase of educating myself about all the aspects of it.