I was also considering the REI expo in February so maybe I'll see you there.You're a self-proclaimed novice but I think many other members of the community would agree that you're well on your way given your potential cashflowing rental and equity.You seem to have a strong position which would allow you to keep growing your portfolio in the next few years.I'd recommend diversifying your RE portfolio the same way you're diversifying with other investments (REITs, Stocks, bonds etc.).

You are out in Cali so it is tough to get a good cash flow deal but if you have a comfort level check out states Like Indiana, Ohio, Florida, Las Vegas, Tenn, Georgi and a few others.Unlike Cali you can still find a decent 2-4 unit in states Like IN, OH and FL for under $250K with rents at or above $1250 a door.

Seems to me there is only upside for them but no share in any downside if the unit is not leased to short term stay occupants.

They acquired the neighboring four-unit in the 1990s for $150,000.00.

So choose wisely and good luck I like the passive nature myself of boat and RV storage.

Make sure they fit your communication style and prelease the units.

You can read the full story in our self storage post for that location.  

One thing to consider is that in terms of wealth building and Kiyosaki's Cashflow Quadrant, owing a rental and doing work yourself is putting you in the self-employed quadrant, not Business Owner or Investor.I think there are a lot of factors stacked against California for long term rentals, and I think you know it too! 

I would like to start close to home as I plan to self manage the rental side of it.

Remember, the notion of amassing wealth without investing is a dangerous myth perpetuated by self-proclaimed experts.