I would do you due diligence but I have seen others use it to purchase non -owner occupied properties.

You won't be able to use conventional financing and must use a non-recourse loan which typically require 40% down.

My umbrella policy just sent me a non-renewal because Steadily is underwritten by Fortega which is not at least B+ rated. 

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.

I'd also look into property taxes and what is included with that $800 condo fee (that is really high though guessing it may include weekly cleaning). 

The seller will lose some rent, potentially incur costs to evict, possibly costs to clean out the units depending on your sales agreement.

Lock-out, should they continue to not come even, would be typically less than 14-days.Unless the tenant comes even with the rent (which would result in dismissal of the non-payment of the case), there is generally limited defense to this process.

so... clean-out and demo? 

Leaving out auction and foreclosure costs for a second, when you write that check for $220k the trustee is going to pay BigBadBank the $175k they are owed first, then he's going to pay LittleBadBank the remaining $45k, and you will get a clean title as the process is going to wipe the slate clean.

Quote from @Paige Seeley: @Jay Hurst even with 20% down, what non conventional options are you talking about?