I LOVE taking the big guns down, turning around dropping my pink flower panties and moon them and say, eat my dust bishes!!

if you think you are going to return to San Diego in the next 5 years then eating the negative cash flow and hoping some of it is offset by rent and property appreciation may be worth.I suspect your analysis will show that the smart financial decision is to sell the RE. 

Without seeing the property, all of those fixes you listed could easily cost the difference between the purchase price and ARV, eating up your profit- make sure you are comfortable with your numbers. 

What are the likely fee amounts that will be charged by the bank for the foreclosure process that will begin to eat up the equity in the home if it is not forfeited completely?

Sounds like I may have to end up eating costs then on this one.I guess the next question then is do you think I'd be better off just letting my insurance cover any potential damages in the rare event that the pipes leak and paying premiums, or hiring a plumber/drywaller to do the work which would probably cost around $2K-2.5K  i'd imagine from the sounds of it.

However if you're positive this area is doing well and it doesn't have:Population decline or stagnationCompanies leaving the area with none taking its placeDeclining average incomeRising average age of populationRising tax delinquencies or foreclosures I would only take the leap if you understand these and there are still risks such as the aging property which might have a lot of deferred CapEx work which will eat up profits if not forecasted and budgeted correctly. 

I reminded her that Clayton said he would eat the costs and complete the renovations as promised.  

The P&I expense eats up 75% of your income.

These two incentives combined can add up to $7000+ in move in costs alone never mind first and last months rent.So....considering that most people who can afford $3,000+ dollar apartments usually have good steady jobs, and are not the types of people who let their dogs crap all over their place, eat the woodwork, or otherwise destroy their home, I’m wondering what benefit I really get from having a deposit on hand.

If building is brand new then close but having gross leases on older buildings can eat  a property owner alive.