The very tragic LA fires have generated a lot of discussion about insurance costs.

Knowing these boundaries can help you zero in on profitable, compliant locations.Timing is crucial when it comes to approvals.

I was interested in something like owning a rental property as a way to generate some additional income. 

Yearly increasing costs will, in time, eat up any profit they have per unit.

Where are you generating leads and for what end? 

I would recommend fixing it and then determining whether or not to sell based on cash flow and profit after the sale.

I know I already mentioned this, but @Mordy Chaimovitz...If you can get by with lower cash flow and invest for the long-term generational wealth (aka appreciation) in nice neighborhoods, that is the way to go, but it's tough to get by at times -- at least it is for me.Just know everyone's situation is different, and you should do what is best for your specific circumstances!

Valuable and soon to be life changing profitability Lessons learned?

Thats a great profit for a first time. 

Anywhere that one can buy properties for under $100k is very unlikely to have the rent increases that you will need over time to create positive cashflow, or the price appreciation that you will need to make this a profitable endeavor.