That would give me pause before buying rentals in CA or IL.I will be following this with great interest.

I currently live in San Diego, Ca. but have been looking in the midwest, mainly Iowa, Indiana and Ohio, for properties. 

we did this a lot pre 07  in that year Oregon WA and then CA made laws that had lots of teeth about dealing with those in foreclosure.. so we just stopped doing it risk was not worth it.I cant see how an individual can do this really..

Quote from @John Lee: Hi all,My name is John and I'm a recent college grad about to start a Masters (SF/San Jose Area home base in California).

This is how I would recommend doing it:First a caveat I am in Tampa, FL and do not know any rules or laws for CA or dealing with the permits for Joshua Tree.1.

Bill, thanks - Moved to CA.

Would appreciate any other good options, especially those with focus on California markets. 

It is a pretty distanced from where I am at so I will be visiting the location tomorrow.

You might also meet title agents who have resources on, say, foreclosures or probates…and might recommend lenders who actually lend on more difficult projects (as the title companies also know which lenders can close and which are difficult).I also go visit open houses to see what sorts of finish to put on my renovations or to look for the next house or area in which to purchase.  

Good luck.I also plan on visiting PR(san juan for now,  maybe ponce as well) in November for fun and to learn more.