To my understanding the process is adding my units to a board, waiting for the section 8 representative to contact me when there’s an interested tenant, have an inspection done, screen tenant and have paperwork done correct?

In some markets in CA, there are only limited number of permits and you may have to wait over year to get an STR permit.

I cycled through several PMs before landing on my best current option, which is a husband & wife caretaking team that deals with my cleanings, takes care of my pool, handles emergency issues, puts out the trash on Sunday night, and sets up and waits with various contractors when things need to be dealt with.

Sitting around waiting for a bad deal to somehow turn into a good one is stupid (sorry). 

I am left wondering do I stick to my guns and stay patient and wait for properties that make sense given todays rents and interest rates OR do I ignore the gap in what I am willing to pay and what the Sellers want knowing I will have to increase my down payment to 35% to 40% to get a solid property?

@Simeon Rivas - You have two options.Option 1 is to wait for the forwarding address.  

There was an issue with them and I am still waiting for that to resolve - but it’s in the works.The state where the relinquished property was, as of this writing, still has not recorded the deed - 2 months now after closing the county is dragging this out. 

If a flip doesn’t sell immediately, it’s possible to rent out the property and generate consistent cash flow while waiting for market conditions to improve.Infrastructure Growth: The city is also seeing improvements in infrastructure, such as new development projects and expanded amenities in up-and-coming neighborhoods.

Just wait until you or someone you love becomes disabled and you'll find yourself viewing those funky features with new eyes.

If you're taking over a property with a Sec 8 tenant already in place, you'll usually have to wait a full month before starting to be paid, etc.