Where to invest in California?
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If you are looking for cash flow, head up the 14 to the Antelope Valley (Lancaster and Palmdale). You could try Bakersfield too, but that is a bit further away. Just know that you will likely be giving up a lot of that wonderful S. Cal appreciation to invest in these markets for cash flow. There is a lot of vacant land up there, so if prices climb, they just build more ...
Alternatively, if you do not already own your primary residence, I would look to acquire that in a nicer neighborhood which will be more of an appreciation play. Or if you do own your primary, you could consider turning it into a rental and purchasing your next primary.
I've done both short term cash flow investments in the Antelope Valley and long term appreciation plays in LA (which all started out as my primary) as described above, and have made money on both, but I have made orders of magnitude more money on my appreciation plays. The appreciation plays do take time, though ... I wouldn't count on amazing appreciation over 5 years unless you timed your purchase very well, and I doubt that is today. Wherever you buy, NEVER pay retail, EVER.