The "online leads" trend becomes a vast pool of scams, each one discovering a new and "better" way to find motivated sellers via SEO/Paid adds/Social Media etc, and automatically aims to make a profit from selling those so-called leads.

Thanks again for the reality check—it’s grounding and motivating at the same time!

I’m sorting out best options for a house that my husband bought in 2008 which has been a rental for years now.  

I don’t think it matters one way or the other just make sure they have some sort of online portal.

For example, more downpayment means less interest rate regardless or whatever loan.I am trying to see what sort of action I can take right now so I can plan detailed and measured steps to my goal.

All fair questions and yes, there are far too many variables to say with any sort of certainty.

Furthermore, California has a very anti-landlord and anti-real estate investor government that can cause you all sorts of other problems as well. 

You have many options here.1) Terminate the lease: It clearly states that they must have renter's insurance and the lapse can result in a default2)Have them cover the damages with sufficient evidence that they caused it3) Claim it on your insurance for the property, likely they won't give a good payout unless a fire, flood, or some sort of wind damage.

In return, they will be motivated to get a job and pay back every dime owed while lavishing you with praise.

This is my first investment of this sort and it has not worked out how I originally intended but I am learning from my mistakes and will be making better decisions in the near future What made you interested in investing in this type of deal?