We just experienced a period of massive real estate appreciation and the forums will continue to dismiss it's importance.

Does the profit margin make enough sense to put all of that time and money versus buying an outdated home and doing some renovations in a shorter period of time.

Remedial Action must be started within 24 or 72 hours depending on the situation and repairs must be completed within a reasonable period of time.    5. 

I ended up offering to open an escrow account to place the remaining $6,000 I “owed” the contractor and should I have no problems after the 5 year warranty period, the $ would then be transferred to him. 

You also get a new draw period and new interest only period. 

You must generally file Form 3115, Application for Change in Accounting Method, to request a change in your method of accounting for depreciation.The following are examples of a change in method of accounting for depreciation.A change from an impermissible method of determining depreciation for depreciable property if the impermissible method was used in two or more consecutively filed tax returns.A change in the treatment of an asset from nondepreciable to depreciable or vice versa.A change in the depreciation method, period of recovery, or convention of a depreciable asset.A change from not claiming to claiming the special depreciation allowance if you did not make the election to not claim any special allowance.A change from claiming a 50% special depreciation allowance to claiming a 100% special depreciation allowance for qualified property acquired and placed in service by you after September 27, 2017 (if you did not make the election under section 168(k)(10) to claim a 50% special depreciation allowance).Changes in depreciation that are not a change in method of accounting (and may only be made on an amended return) include the following.An adjustment in the useful life of a depreciable asset for which depreciation is determined under section 167.A change in use of an asset in the hands of the same taxpayer.Making a late depreciation election or revoking a timely valid depreciation election (including the election not to deduct the special depreciation allowance).

Chino also has lower property values, is more rural, with higher crime and much higher teen pregnancy, less jobs, but less rules and more farming/animals/ranches. 

Then calculate your cashflow/payback period/roi from the expenses and income. 

The greater metro area’s median home price increased by a more modest 1.1% to $466,998 over that same period.

Ultimately it sounds like you looking to start and scale a portfolio over a relatively short period of time.