The other thing was that we noticed that the electrical outlets which share the wall with the trash shoot and the elevator shaft had air coming out of the holes.

This retaining wall is there due to a change in elevation between the 2 connected properties.

However, maybe it's only within certain states like CA because of the elevated property values. 

Money in the bank and operating monies could be ways for a conventional lender to get comfortable with their elevated perception of risk brought on by a non-stabilized property.  

Nothing too major, but just lots of deferred maintenance and lack of upkeep, and some crazy stuff too (the only house around that has a gravel driveway, backdoor is elevated for a deck, but no deck there)I could buy cash for the purchase, rehab, etc, but there's no way I get a good return there.Assuming 8% Maint, 6% capex, 8% vacancy, 8% prop management for rental scenarios.Is there something I'm missing, some"creative" method I haven't considered of making a reasonable flip return, or making a decent CoC/monthly cashflow?

At some elevated point, the price of homes will outstrip the amount of rent, making the 1% rule not applicable in that market.

I was just told I need a $6,000 test for my elevator that needs to be done once every 5 years or they could come shut down my elevator.

Only normal expenses are electric for elevator and exterior lights and normal maintenance.

In order to qualify for the permit though, the city is requiring a floor plan, elevation plan, and a site plan.  

All that being said I know a few great coaches who actually have elevated knowledge or experience and will DM you their contact.