The seller insisted that I use his attorney as the escrow agent, which I typically don’t do, but the deal was relatively cut and dry so I was agreeable after drafting favorable escrow language.

Has anyone found that fix and flips are drying up?

The ceiling is bone dry right now, and was after our heaviest rain a couple weeks ago.

Just this past weekend, we placed a bid on a fixer upper with termites, extensive water damage, dry rot,  you name it. 

I have a rental rehab coming up end of march and coming up dry with contractor leads to get a bid.

Flipping is a little more cut-and-dry, but there's good money to be made as a buy-and-hold investor in lower-income neighborhoods and places you wouldn't personally want to live or even go to at night.

Also, because it is THEIR home, you do not have the greatest position, as if they sell and run, you may be left high and dry. 

If the loss is in excess of your income - you may be eligible to carry the loss forward.

Realizing this RE will have huge negative cash flow, how confident are you of market appreciation (property and rent) in excess of the negative cash flow as no one invests with a plan that shows them losing money on the investment.Final thing to consider is your likelihood of coming back to San Diego and how nice a home is it for you and your family. 

If you don't see a dry cleaner, liquor store , hair care or something else within 5 miles go after that aggressively by contacting businesses nearby in those areas.