Wow 10 bucks for 5 gallons would be pretty amazing! Thanks for all the input, I think a good strategy for now is to pick a recipe I like (easier said then done), by in bulk for that recipe and branch out from there. I am sure I will never get away from the kits as it seems a good way to try new things. Morebeer is about 25 mins away for me and they have 50lb bags of 2 row for $36, seems like a good place to start unless anyone has a better source here in Socal, maybe Steinfillers?
If you can buy in bulk, and store the grain, you will really save.
I buy hops by the pound, base grain in bulk, and wash/reuse yeast.
Some examples of recent brews:
Cream ale- two-row, rice from the Dollar Store, reused yeast, and hops bought in bulk: $19.09 for 10 gallons!
House IPA- two-row, amber malt (a little, not bought in bulk), hops bought by the pound, and reused yeast: $30 (for 10 gallons), assuming 1/2 the price for yeast since I used it twice.
My "Freezer Cleaner" ale that is on tap now- two-row, homegrown hops, reused yeast, and leftover grain from other brews: $21.65 (for 10 gallons).
By growing hops, and buying them in bulk, you can save a ton of money over buying them by the ounce!