The Bay Area is a lucrative market and doable with the right strategy and systems in place. 

(I feel like it should be someone in close proximity in case they need to see documentation.)I've got everything pulled together and pretty much entered into the H&R Block software.

V/R (Dom)Erik G. 

You need a good source for local landlord tenant laws, a  reserve account for the unexpected, setup a payment tracking system, find a handyman, set expectations with your tenant about what constitutes a valid emergency, have the tenants sign a "walk through" list with photos of the condition of the house, make sure they have renter's insurance, 

Every market, submarket, property type and platform could potentially have it's own systems that work best for it.

In my experience i’ve seen higher returns with some of the small properties because they are owned by mom and pop and have a lot of room for new systems and processes. 

The exterior is terrible and needs to be redone, the inside looks bad too with the ceiling and walls falling apart, and I'm guessing the hvac and other systems will need to be replaced.My question is, can somebody give me a ballpark estimate of how much it would cost to rehab this house?

You may also want to tell them other products that will damage the septic system as they are different then city sewer systems.

The system told me to take the 24K deduction while me loss is about 50K. 

The US has what's known as a "voluntary compliance system".