Outside systems like plumbing, sewage, and the water heater should be in good condition, and make sure there are no signs of pests.Additionally, look into property taxes, insurance costs, and zoning laws that could affect future development.

Fast forward a few years we are we financially free via house hacking and owning small businesses (leveraging our house hacks as collateral). 

-save $1k+ in taxes and fees yearly-can use the savings to get more insurance and a higher liability than the value of house. for flipping houses in California does anyone just put into sole proprietor own name and just use the $1k+ in savings for LLC costs into Insurance or use for savingor am I just being too risky. 

Sure don't do the renovation, I only do renovations that project a return of 2x the cost of the renovation.

If comps are scarce, you might also consider the replacement cost approach, looking at what it would take to rebuild and adjusting based on market conditions.

These cost-effective renovations made the home more attractive to buyers and increased its market value.

Vacancy is a normal part of the business.

Quote from @Anthony Sigala: We are all aware of the 1% rule--the gross rent produced by a property must equal 1% of the of the property's acquisition cost.

Normal diligence is good to go through: years in business, reviews, responsiveness, personal references, insurance and bonding, etc. 

Here are additional comments:1) Buying out of state removes any local knowledge you have from assisting in your success, including knowing areas, people and costs. - We always recommend buying your first rental locally if possible and DIY managing to learn as much as possible before investing OOS.2) Lots of crooks and incompetents in the PMC world:( They both cost you money.- As already stated, you'll have a small portfolio.