If you come across a better opportunity here in AZ where if you can take your 1M and turn it in to 1.2-1.3M ( maybe a value add deal) sell the house, take the equity and use it to get a bigger return.

If San Diego wasn’t in CA that’s where I’d live.

I've been on at least a half dozen posts on BP where people try to explain-away the fact that they broke the law. 

I have came across the 203k loan where the numbers might work better if I find a good deal but there is alot that comes with the 203k loan and I want to make sure I am heading in the right direction.

A FHA 203k Loan is where the purchase price and rehab costs are rolled into a single loan.The downside of using FHA or a FHA 203k is you will need to live there, for a minimum of one year (to satisfy FHA Requirements); AND because you closed personally, you will not have Asset Protection, in the form of closing in the name of a LLC.

If I were new I would simply stick to areas close to where I live.

@Dallas Rapoport where is the property? 

I would just go on VRBO (or similar) and look how people design their properties where it really matters (they are trying to rent to daily guests and design/amenities are super important.

Where specifically in this area you are looking to invest? 

Then you can see where the issue is.