If we're going to just talk in hypotheticals, of course anything is probably possible anywhere but highly unlikely. 

Check out investor lift, there are sometimes good deals on there, but make sure you vet the area and try to get a due diligence period on your offer, a lot of the times you can trust their ARV or their take on the condition of the home.

Usually the numbers don't work to build in these neighborhoods, unless government tax credits, etc.Do you see the problem with your two statements:"The turnover costs could/will be high"and"How much more damage could they do?"

Constructing two 4,000-square-foot duplexes on separate parcels in San Ysidro would cost roughly $2.96 million, with a market value of $6.31 million, offering a 113% ROI.

I used the background and credit checks offered through Cozy. 

The first was with Amguard, who said they were simply pulling out of the market, and then the more recent one with Progressive, who said they are no longer offering coverage in the area.

If they have an occupancy of 9, is the nightly rate high enough that it would make sense? 

Had a listing go under because the seller had signed an offer to purchase and just walked away from closing without signing. 

Highly recommend them both if in the Inland Empire of California.

Similarly, quality dividend-paying companies often retain some earnings to reinvest in their business, increasing the company's (and your) value over time.