Help the environment and increase your net worth $1K for each 5 minutes is great.I agree San Diego appreciation has come in spurts but for the long-term it historically has gone up faster than inflation and faster than virtually all other locales. 

Long term it has been historically risk free as in 90 years it has increased at an annualized rate just under 10%. 

You don't want to be an additional insured (if that's the correct term).  It

A lot depends on how well the house was rehabbed and if preventative maintenance is done ...preventative termite treatments or making sure the soil is graded and gutters are clear and hvac/A/C serviced regularly.

I will take care of termites, but ants, roaches, fleas etc are due to tenant behavior & are pests they can control.

I also realize that this is an older house and once things get opened up there may be dry rot or termite damage that will need to be repaired.

I'm not super handy and would rather not have to deal with major overhauls like mold or termite infestation but I'm comfortable with painting, flooring, re-doing kitchen/bathroom etc.I'd plan on buy/holding this primary residence, but once enough capital is built up I'd be more interested in fix/flips. 

So for the short term it might be worth just renting.

And check for termites.

Short term, it may be worth it if in the long term you are going to clear that much every month.