The timely & effective boots on the ground is also an element to consider.

@Kaitlyn CastilloI own 5 Airbnb’s and there is nothing passive about it unless you have a manager on the ground.

Or any of those larger cities.Get outside the city limits along major roads.Find county or small town municipalities within 1 to 10 miles of the San Diego City limits.Learn their zoning and zoning map.Look for the biggest/nastiest piece of ground that you can bulldoze and flatten.  2 acres or greater.Do two business models. 

We improved some bad electrical work (a two-pronged system that wasn't grounded) and did some light cosmetic paint as well as added safety features in a few areas.

If the rehab was 40K and divided into 4 stages of 10K each, then you'd front the first 10K of the rehab, the lender would inspect and if satisfied, would reimburse you with a 10K draw, which you'd then use to do the next 10K phase of the project, rinse and repeat until the project is complete.Like I said, it's possible to find inexperienced lenders who will loan you based on the purchase price + rehab project cost or (worse) the ARV, but that's naive/risky to the lender as s/he has no assurance the funds will actually be used on the rehab.I hope that makes sense and helps with your analysis!

Paying back the lender should be part of your business plan for the rental phase of the unit. 

Also looking into Alabama and have some friends who want to partner who have boots on the ground in Utah.

But according to NAR guidance, this is now grounds for discrimination based on fair housing laws. 

However, one of the benefits of a modern crawlspace is that the sewer lines are above ground, clearly visible and can be inspected for flaws without a scope.

I was advised by an architect friend of mine it might be better to tear it down and construct something new from the ground up.