I probably err on the side of holding vs flipping for a profit too much, as it's hard for me to mentally justify selling something now that I can 99% expect to be more expensive in the future. 

Have an abundance mentality.

@Jason KimThis is an age old question that is more about Active vs Passive real estate.Both options work, it's more about your goals that will determine your path.   

When you figure out the Interest Rate, how do you determine what number to use? 

You need to run a capex budget to determine how much to save for major repairs.

Trying to determine if a friend should purchase a condo or a house in Long Beach.He's looking for a 2 bedroom place with a price limit of about $500K (that's under the 1).For any Long Beach, CA people, what advice would you give him?

Clermont, Winter Garden and even Apopka would be good choices for building appreciation and still have a good commute.Your budget may determine what areas are going to be attractive enough, but the rental market is always strong here, so I wouldn't put too much weight on that for now since you plan to live in it for a couple years first.Always happy to chat, just message me and we can set something up and see how we can help you plan or take action now!

They will also be able to help you tell a good deal from a bad one and can help you learn how to estimate your repair costs, marketing costs, estimated time on market etc.Your experience level will go a long way in determining how things go.

After running the numbers, we determined it to be a suitable first property that would cashflow ~$300/month --if we got the rent we wanted.

Pricing will be determined by your FICO and the desired LTV.