You probably want to put only 20% down and easy on rehabilitation cost keep it in mind in a year or so you need to clean up and remodel as tenants will not keep homes the way you would.

I also don't trust the lower end condo stock down here, ($450,00 and under) as I've worked for an architect involved in rehabilitating these under maintained properties and most seem as though they are old stick built buildings about to fall apart.

A lot of affordable housing developments currently in operation in both rural and urban areas will need recapitalized and substantially rehabilitated in the coming years as well. 

I’m in the process of closing my first rental it’s a solid single family but does require some rehabilitation.

Even if the lender provides documentation showing the cost and extent of rehabilitation that went into the property resulting in the increased value, the second appraisal is still required.

My only concerns are as you mentioned rehabilitation costs....and of course dealing with California.There's so many empty buildings in silicon valley right now.

If your ARV and your 70% rule add up, you have good intelligence coming from your real estate agent, and You have reasonable rehabilitation costs, pull the trigger.

But the case where you are buying, rehabbing and selling within your IRA would in most cases not be applicable for UBIT, here is food for thought or arguments:(1) Your IRA is not you, and your IRA is for your benefit, and is managed by a directed trustee or custodian for your benefit(2) Any investment in your IRA will be deemed as Passive Activity, since you cannot materially participate in the investment from your IRA (else it is a prohibited transaction)(3) Your IRA does not file any self employment income taxes(4) Your IRA may file UBIT based on UDFI (assuming the IRA has borrowed funds for acquisition or rehabilitation)Now if your IRA invested in an pass-through which did the flips as you describe, the entity itself first must satisfy the requirement of a "real estate operating company" to receive any exemption, else if it does not it could generate a UBIT for your IRA as an "operating company".As others have mentioned, please work with a knowledgeable professional in this space for your specific situation.

Mostly the streets and areas that have changed so far have been tear down and rebuild as opposed to rehabilitating the older houses.  

Indianapolis under Mayor Joe Hogsett is attempting to tear down, rehab or otherwise rehabilitate vacant and problem homes throughout the city."