$5K seems pretty expensive to make a few bucks/month.

That's the expense I sweat and fret over. 

I'm confident that houses under 200k will never be less expensive on average than they are today, though.

They will initiate their own insurance policy, that may be more expensive than yours.

I gross around $110,000 per year in rent and pocket about $3,200 / month depending on how many expenses I have.My goal is to achieve financial freedom soon. 

Of course, there will still be more and less expensive areas; it just won't be quite as drastic. 

It can be quite expensive to fix this property.

There are some lower priced (I understand "cheap" doesn't always mean "value") condos in my area, and after running some numbers, I feel I can rehab and rent them out to cash flow in the low hundreds (after expenses, commons, etc).Anyone have experience in this before?

John.Getting into investing in LA with $50-100k is going to be very difficult, as you know this market is super hot and very expensive.

Are you sure you're accounting for all of your expenses?