I understand wanting to have multiple sources of potential leads.

The price seems to be about $200k less than anything you could find in San Diego county.I agree with the other comments that you should always go with the worst-case scenario in analyzing the deal (plus the contractor is a better expert for repair costs than your agent, but I would get multiple bids).It doesn't seem like there is enough meat on the bones for this deal. 

If the area is stable or growing in population with multiple strong employers, then I'd be comfortable investing in the market at the right prices.

My pro forma provides financial performance for a range of financial metrics such as cash on cash, IRR, equity multiples and discounted cashflow.

Have you looked at multiple financing options? 

Plan for a single digit rate and 1 or fewer points if you look around aggressively, assuming the only issue is the rolling 30 day lates (I'm not licensed in your state, but am showing that for a California scenario with multiple 30 day lates in the last 12 months).

Did you get multiple quotes? 

He has a great story about one deal where he put in an offer way below asking, had the agent come back multiple times asking him to come up on price over the course of several months and ultimately got the deal (with a big profit built in) by sticking with his original offer based on his due diligence.

You can talk to a private investor, but not sure I see a big enough profit in your deal to take it on.Start living like no one else does, get a second job or a better job, so you can save $20-30K and you can make this happen.I've had to pass on two deals 'cause I didn't have the cash to put 'my skin in the game' (just put $70k into buying a primary residence).

There are people that often times offer portfolios of multiple sfh.