This is terrible and I really feel for you guys.

I would be careful when looking at discount PMs because if they aren't making money, they likely have terrible systems in place for management. 

CA is still a market where people want to live and not a terrible place to invest.

The major issues come to play as James pointed out when there is lack of disclosure to the seller and a note does get called and puts them in a terrible position.

The deals there I have seen maybe net 2% terrible Miami's volatility will be high, just cause that's the nature of some markets.

And I am a terrible landlord per se..

For example it was widely reported that US commissions were previously fixed at 6% and the lawsuit ended that (the article you referenced makes this false claim also, and frankly is terrible reporting IMO).

I agree the search feature is terrible.

Also, be honest with yourself that the approach you describe is intended to take advantage of people who just don't understand what a terrible deal you are offering them. 

The house was in a terrible location, at night there was gun shots.