Does this appear to be a sound investment?

Since it appears to be capital gain it would have a range depending on your agi from 0% - 20% federal.  

Culver City prices have also gotten very high and it's not too far from Inglewood .When I was growing up Culver City was an affordable area but now you are talking $1.1 million or more for a pretty modest home there .I guess it looks "cheap" to some very $2 million plus for a small outdated home in Santa Monica Both of the listings I posted appear to be Single Family Homes .

This appears to be a case where there was a temporary housing/rental shortage with little barrier to entry...those don't last long.Many investors feel that it is prudent to map out your exit strategy(s) at acquisition. 

Trash $19 Actual Electric $0 Estimate, Tenants pay Gas (for Heat) $0 Estimate, Tenants pay Landscape / Snow $125 Estimate, large shared parking lot, lots of grass, lots of snow Accounting / Tax $50 Estimate Legal $30 Estimate Vacancy/Loss 10% $253 Estimate, number bank appraiser uses Repairs & Maintenance 5% $126 Estimate, appears to be very little deferred maintence, would be confirmed Management 10% $253 Estimate, would self manage, but to put against NOI Total NOI Costs $1,763 ................................................

In your case it appears the rent increase is $175 not the $125 you have stated.

Buy any deal that makes sense and falls in my lap from seeds sown already (I've noticed it's when I stop looking so hard, deals and money appear). 

You should also remember that being a landlord requires some form of cash or cash-equivalent reserves. 

Here is the strange part though, I searched the property records and the deed instrument number being auctioned appears to be associated with a HELOC (Home Equity Line of Credit) that is tied to the original mortgage.  

@Michael Cheng I am a Realtor, so all of my listings appear on our MLS site, which helps me with whatever rental I have available.