Unless you move out to the sticks (which pretty much will put you out in the desert because the westside is completely built up) you won't find anything of significant size. If you do, expect to pay well into the 800k to $million for house.
Point of reference: In my town (El Segundo...directly south of LAX airport) you can't touch a 2 bed 1 bath for under $500,000.00, and usually into the 6s.
As for your swap: even if it is pre1975 (74 and older) and doesn't require a smog TEST, it is still illegal to swap in a motor without telling the State. If you do tell the State, you have to take the car to a referee station to have the swap certified, thus ALL smog equipment from the donor car has to be in place.
Like David said: the weather is great all year, but other aspects of CA really suck. I too, would leave CA in a heartbeat if I could find a job as good as the one I have now.
Hope this Helps!
BTW, I believe that CO is just as expensive and strick (emissions).
Tim