Even better if you can work for a property manager or real estate compnay. 

I don't want to step on any toes, but if you're not working with an agent, I'd be happy to help you, but even if you are,  I'd be happy to talk with you about the Redding area and answer any questions you might have, etc.

Even a LOI is not strong enough to start spending time, effort and MONEY on due diligence.  

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Should I go through with taking ownership of the property and try to salvage it for profit or do I refrain from even involving myself in the situation as it may cost more than it's worth to save it?

First thing I'd look is the zoning for that property to ensure ADU/multifamily is even possible.

Class D risks > Class C > Class B > Class A, but how many investors even know what those risks are, let alone know how to account for them in their ROI calculations?

Something I discovered recently is; if you have a QBO Accountant start your company and allow the Accountant to get billed, you will get a 30% discount even after one year, but if you create your QBO without a QBO Accountant you disqualify yourself from their Accountant discount. 

This would be my first real estate investment, making the decision even more critical.I understand that backing out would mean losing the $2,000 earnest deposit.

However, you will get a range of perspectives because several here don't mind and even brag about losing monthly.