Sounds like a good plan, should have plenty of options available.I would be cognizant of any group you talk with on two areas, the location of the property including any potential concerns of it being 'rural', as well as the minimum purchase price and/or minimum loan amounts.

Yes, you can deduct related expenses including gas, loan interest, insurance, etc. using the actual vehicle expenses method to deduct auto expenses for your rental or other businesses. 

Unfortunately, my experience has been problematic, to put it mildly:* Communication: There were significant communication issues, including difficulty scheduling calls, which is still an ongoing problem.* Additional Charges: Jenny requested that I deposit on her checking account an additional $20-25k for her to purchase furniture, which I refused because I thought it was very strange, opting to give my card # instead.* Work Quality: Jenny never showed up to the house, she sent 2 people instead, she never mentioned she would not show up herself, she never asked for approval to send two others instead, they did not complete the job, and there were multiple unauthorized charges on my card.* Receipts and Expenses: Once I brought to Jenny's attention that we were 20k above budget, she refused for days to give me the receipts, saying that I needed to give her my credit card statement first.

Other areas nearby that are great include, Cardiff, Encinitas and Del Mar. 

I also included some instructions to help. 

 $9k/$72500=12.4% Rate of return (not including any closing costs which would reduce this return).  

Clearly define terms, including an exit strategy, buyout options, and how proceeds will be split.

Would love to hear your thoughts on whether pursuing this adjustment makes sense or if I should reconsider.For reference, I’ve included the following assumptions in my calculations:5% for maintenance3.5% for vacancy10% for capital expenditures and management feesThanks! 

I've talked to lots of California and a few NYC investors that have lost money (including myself) who bought inexpensive properties in the Midwest mostly and a few in the South (Class C is volatile). - some strategies I've seen California investors use to lessen negative cash flow: house hacking, mid-term rentals (people temporarily displaced from home renovation or insurance reasons like fire), rent by the room, Short Term Rentals. - The ultimate house hack, live in the small ADU unit and rent out the two levels of the main house on AirBnb in San Francisco (I would have thought STRs are oversaturated in S.F. but it worked for them and they stay fully booked).

There are kinds of guru's who will help you buy section 8 properties in a turnkey package including the rehab the property will need to get it rented.