We run into this especially at out parcels in grocery anchored centers, and our users generally can't make a ground lease work for the business case so the next best thing does tend to be the BTS or we often do Reverse BTS deals where the majority of the building design and management etc is done by the tenant. 

I could get the same or higher overall ROI by putting my money in an index fund which is 100% passive.Deal #2This seems like a good deal to me at the asking price.

Would second Michael Wyatt, and say connecting with a realtor that understands investment properties is a great start and will allow you to put in some exercise so you can better understand your area, comps, and what makes a good deal. 

I can kind of understand that he wants to make sure I'm legit but that's a bit of a red flag for me.

@Cameron Porter half off of a $30-40K price may not be enough to make a purchase work.We've seen clients quickly get upside down with Land Bank purchases:(So, proceed with caution and hire a great inspector and contractor to go thru the property before you agree to buy it.

My management company has recommended sending in their own contractor to make repairs as the tenant has concerns about mold growth. 

I would recommend making use of all the free resources available through BiggerPockets and the internet.

You can purchase this with a low-money-down FHA loan. 

I have to check on codes/laws/regulation, but I know CA is on a high of making thinks convenient to build those at the moment.

That sounds good and makes me want some State Road Pizza right now!!