Very nice rehab and the pictures show upscale attributes after rehab.

I can attribute quite a bit of the appreciation from the hard work put into it.

The lower offers from locals citing the flood zone as a detractor are indicative of the challenges in pricing such properties.Comparing your property to a similar one listed at 1.2 million is useful, but its prolonged time on the market suggests overpricing, possibly due to the flood zone challenges.Your target selling price of $650,000 might seem reasonable given the growth prospects of the area and the property's attributes.

If you trade up and acquire a more expensive property than the relinquished property, then the portion of the trade up value of the replacement property attributed to the dwelling structure is NEW BASIS and can be depreciated on a new 27.5 year depreciation schedule.  

Plus, I attribute much personal happiness to being near the water since I'm an avid surfer, and thus cheaper inland LA still doesn't make sense ;)

Probably attribute more time to developing self worth. 

I like that the area is developing and all the other positive attributes listed here.

You seem to be mixing a cash flow analysis of this property with costs attributed to a rehab.

They do not.2) You snip a quote that is Not my position, but merely my reiteration of another's, and attribute it me.

All of those things you mentioned are attributes that I atleast think I have and this is something that I not only have passion about but genuine interest.