From my expeirence it is not the price of that property that scares them it is likely the condition.

When I was first starting out, I was scared out of my mind. 

Normally, FHA requires the seller to fix things that pose "health and safety" concerns before the deal can close.

This bill would authorize the owner of an accessory dwelling unit built before January 1, 2020, or built on or after January 1, 2020, under specified circumstances, that receives a notice to correct violations or abate nuisances to request that the enforcement of the violation be delayed for 5 years if correcting the violation is not necessary to protect health and safety, as determined by the enforcement agency, subject to specified requirements....Good luck

I have purchased before but never in a high seller market,any advice on how to go about it and not being scared to take a leap?

Have you considered joining a country club, or an upscale health club like Four Seasons?

So in conclusion.. we've got proof that this lady was running a hospice home health at our house!

But at the same time, investing out of state definitely kind of scares me too.Now my options are pretty much between:1) Investing in LA for cash flow, which would be preferable, but I'm not sure if it's possible2) Investing in SoCal but outside of the city (thinking Riverside, San Bernardino, etc.)

Get yourself a team that knows the product and not scared to write a VA offer.  

I am scared that I am not doing the numbers right or that I wont be able to refinance correctly (or how to refinance at all) given that I get a hard money lend .