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best places to stay in San Diego and L.A

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We will be visiting California in July next Year and plan to spend a week in San Diego and a week by the beach in the L.A area(thinking santa monica, laguna or newport). We are planning on renting a house/condo. Where are the best places to stay and are there any places to avoid? There will be 8 of us, ranging in age from 15 to 60. We want somewhere close to the beach and an area where its safe to walk about.

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