This would increase the benefit to where the fee would not be so outrageous that it would hinder the investment.

Materials have increased more than 20% in the last 5-8 years.

However, San Diego is an extreme case.However rents increase fast in San Diego.  

Rent rates have increased so quickly over the last few years.

When you save up enough capital, slowly increase your portfolio.

With some changes to the management structure and leadership, I believe we can significantly increase the revenue potential while providing a positive impact.

If you have extra cash at the end of the month, then do double up payments on the mortgages so the principle is reduced and this will increase your heloc room.

My guess solely looking at your numbers is that it's an older/distressed property which means you have to account for more costs in capex. 2nd thought being it's not in the best of neighborhood then you'd have to take into consideration lower quality tenants/ neighbors and maybe increase expected vacancy and late payments.

This is very helpful.I agree and am aware that there is increased risk to an auction property. 

Keep in mind that they can increase that period if they get complains from the community, so make sure you're in good relationship with your neighbors.