Hi hopefully I can be of some help as I've been in your shoes. You've allready gotten a lot of good info.
I think you can find a small enough weekend warrior, gearbox, Ragen or something similar down in a decent price range. I'd stick with something 26' or less with your truck.
I've owned three weekend warriors in all shapes and sizes and I can say they are HEAVY.
I can't speak for the quality of these models but I would consider the weekend warrior sl2805 and the sl3005. Those would probably be fine with your truck.
I wouldn't hesitate to tow with a lifted truck ( in fact that's all Ive ever towed with) just make sure your rims and tires are rated correctly. Gearing absolutely helps but is not cheap for a 4wd.
As far as a fiver all you need are flipped axles and you are good to go there. I've had three toyhaulers with flipped axles and have never had a problem.
At some point you may want to just consider going be diesel route. There's plenty of good older trucks for sale in California.
I have a 10yr 6.0 powerstroke with 176k on the clock. It is an excellent tow rig. It's also lifted 8" on 37s. I've towed 40' toyhaulers all over the state.
Any questions feel free to ask. Thanks and good luck.