Unfortunately the high interest rates makes finding a cash-flowing deal quite difficult.

That's a more difficult sell.You're likely going to have to rent it out as individual rooms, perhaps to local college students. 

To nail down where there are opportunities in B/C class neighborhoods would be difficult - I'd recommend getting a realtor that works directly with investors and knows where to find what you're looking for.I'm biased with PHX / AZ, but historically it's proven itself. 

It's just more difficult to locate, but not impossible. 

It's really difficult to find anyone good for any kind of work sadly.

Good deals are very difficult to find though, especially in today's market. 

So it makes it very difficult to negotiate with borrowers who are delinquent in judicial only states, as well as is a risk when the portfolio comes under stress (such as in a severe recession).

If the percentage if equity is very low, it makes it difficult for an ambulance chaser to come after you.  

As difficult as the San Diego market is, I think this is worse  than most especially if you have the money to buy traditionally.  

Add in the high interest rates on construction loans and mortgages, and it all makes for a difficult market for real estate investing.