Thanks for the tip @Lance Lvovsky Any other ideas on how I should go about determining a cost basis when there's basically nothing to go by except perhaps performing a present value calculation based on inflation?

After purchase your basic steps are just rehab and list and then go through the buying process again but from the other side

So basically if an S corp's California income is $53,333 or less, it will only pay the $800 tax. 

Current owner would dispose of the property for actually  owed amount of both loans plus closings costs... so basically they will not see any proceeds and just want to get out from under it. 

@Abad MarroquinYes, 79k out of 80k used on a HELOC would hurt your score as your utilization would be 99% and basically once you get to 90% utilization, you're considered maxed out.

I think the first thing to do is sit with a really good lender, I have one in my office I love, Paige Solberg at lending concepts.  

I'd recommend you do your normal due diligence on these folks, but the concept is pretty well established as beneficial.

What are some basics to consider in this and any hint/tips/links for more resources to look into or podcasts on this?

I’ve found Investing in Real Estate 7th Edition and What Every Real Estate Investor Needs to Know About Cashflow and 36 Key Financial Measures to help me understand the concepts of analysis by leaps and bounds.

I think this is my first post in the 2 years I have been a basic member and I am quite happy with the support I have received aside from the condescending one.