Cash flow is just the icing on the cake.

"Never" trust wholesalers rehab cost, even when you come up with your rehab budget add 10-15% contingency to it, if you don't end up using it, it's the icing on the cake but if you ended up needing it then its the difference between making it or breaking it.3.purchase closing cost seems low, I would say around $4K-$4500 specially if you are buying from well known wholesalers in town.4.Your holding cost seems high, unless you are financing the whole purchase with hard money.  

Never assume a "cake walk". 

Every month your equity goes up. 2) you're getting hopefully a few hundred $$ each month in cash flow3) you're likely going to have appreciation over the years (though most investors here consider that just icing on the cake and don't plan for it)4) you've already increased the equity in the house after your renovations (as if it were a flip), but without the short-term tax consequences.

Piece of cake .

We currently live in Anaheim, California.  

Now I know that TICs in CA take the cake.

This was sort of the icing on the cake for me.

The unique part of the situation is that the property mgr uses my contractor as a servicer who happens to be my friend and he has recently sent me photos of certain living spaces that can best be summed up as NASTY (e.g. master bathroom tub looks like it hasn't been cleaned since the beginning of the lease six months ago, the bathroom sinks have caked on toothpaste and the toilets have incredibly dark rings, etc).  

40 minutes or so, piece of cake.