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?"

Run the comps, calculate repair costs, and plan multiple exit strategies so you maximize every deal—whether that’s wholesaling, flipping, or holding for cash flow.

Second thing would be to work with a contractor, this is great stuff to do since you know building a house, building material costs, and knowledge of right and wrong what to do. 

I'm getting nervous that the area is eventually going to become unlivable because of the prohibitive cost of the insurance.

Because of cost, duplexes are are a better choice and compete well with SFH and or apartments. 4.  

However, in California, each LLC incurs an $800 annual franchise tax plus gross receipts fees if revenue exceeds $250,000, and property insurance may cost more.

I'm looking at monthly cost to seller vs. anticipated rental income, purchase price relevant to the ARV of the area and interest rate, balloon, etc.

Partner Driven saw the Brimerage Rd property as a straightforward opportunity with strong potential for a quick flip.

And that can cost you time and money.

With down payments, improvements, commissions, title work, holding costs etc....