Both LJ & CV schools are good so if San Diego is where you want to be once the kids are out, then I would choose the area you like best between those two.
Not sure if you can get a SFR with at least 3BR & 2BA in the walkable areas of La Jolla for $1.2mm right now as the market has gone crazy the last 6mo. Those that are close to $1.2 or perhaps even under are most likely on very busy street or need lots of work.
