203k is appealing and can make magic happen, but in hot markets (LA in the summer...) the house and the situation of the seller really needs to be a perfect match.In general you don't go find a house to 203k, you go look for any old house, coincidentally find a house that happens to coincidentally be a perfect fit for 203k, and then you start talking about 203k stuff.Typical characteristics:Too crummy for cosmetic flipper types to want.Seller more motivated by sales price than by closing quickly. 

(In general, I recommend NOT including the rent you're not getting as if you were getting it).And of course I don't know the market there, or its appeal to $400k+ buyers, so you can take my comments with as many grains of salt as you like.

One of the really appealing aspects of this deal was that it is a duplex with two groups of the same family living side by side.

Painted front porch and front door to add more curb appeal. 

It does need some aesthetic changes but the roof is new, windows are aluminum wrapped, small yard.Listed price: $139kAsking price: $95k ???

Looking at the outside, it needs work to increase it’s curb appeal.

We have upgraded this property a decent amount from an aesthetics and general cleanliness standpoint, and put about $7,000 of work into it to begin with (new countertops, a few appliances, new carpet, paint, and tree removal).

While flipping generally holds the most appeal to new investors I would strongly recommend you look at your first project as both a flip and a rental. 

I think you need to greatly enhance curb appeal too to get renters in the door. 2 cents. 

Flips are great, but building a portfolio of rental properties is more appealing to me from a long term financial standpoint.