Back when I started selling foreclosures, the REO (real estate owned) inventory was crazy high.

As long as you follow the two-year holding rule and structure the deal properly, you should be able to move forward, but I’d highly recommend working with a tax pro to ensure compliance.Disclaimer: I’m a licensed real estate broker associate in Florida, not a CPA or tax attorney.

Yes - and even when its out there its typically impossible to qualify (need high rate and high DSCR and typically would have to qualify as a LTR - so almost a unicorn or in a really bad market)

This specific deal was a close friend's apartment that he was renting.

Would highly recommend @Keith Mintz for this case, he knows San Diego like the back of his hand. 

If someone offered 3%, is that too high?

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.

High praise coming from you Steve.

Maintenance and admins fees are high.

The wrong property management approach will lead to the dreaded three:1) high drama,2) high turnover,3) high property damage.Use Household-led Property Management (HPM) developed and perfected for co-living.5.