@Anthony Ervin, typically these inputs are a combination of market research, talking with local industry professionals, and some of your own instincts.  

And they’re facing 30-40-maybe 50%% combined state and federal taxes.

A temporary market imbalance, combined with cheap borrowing costs (ultra-low interest rates). 

I would start by asking the seller (or agent), "Are you (or your client) willing to entertain a joint venture?" 

The price was too high, initially wanted to combine the units to make a duplex.

Go to facebook and type in "Business Owners California" or "Orange County Business Owners" or some combination of that (and maybe a few other key words).  

Want to combine the results of 10 different medical studies and look for patterns?

Better to get a HELOC for backup then use personal savings or a combination of the 2. 

The LLC formation combined with operatring the company in accoordinace with the operating agrement & appropriate funding to present itself as a viable business is what's needed.

Stay skeptical.Herzliche Grüße-Andreas* The preceding has been my opinion only, the views are my own, and are intended for educational and entertainment purposes only and does not constitute financial advice.