I developed a calculator in excel that adds the rehab cost to the purchase price thus adjusting the cap rate, if the rate isn't where you want it to be lower your offer or don't make one.

There are new malls being developed in the surrounding suburbs and big corporations like Amazon and Uline  who have built warehouses in the surrounding warehouse.

With development at an all-time low throughout the Bay Area, I don't see prices softening significantly in the near future.I would look into getting a cash out refi on your property and purchasing a cashflowing multifamily as Jason and Calvin have suggested.

Does due diligence on the property need to be conducted before or after identifying the property within the 45 day window?

Develop a relationship, see if they’re savvy, and if they know real estate most high quality lenders will spend extra time with you making sure that you are organized in the best way possible for them to give you money.

I place more weight on the desire for cash flow, but as I believe its more of a spectrum than an either/or, I'm trying to identify markets where there is at least a greater likelihood for appreciation as well. 

So I found an architect from a similar project development that I want to undertake (10x 1BR townhome units).  

Very beautiful suburban area with lots of development happening in the area...well, last time I was there which was sometime last year.You've definitely come to the right place for your real estate investing career. 

Your dilemma is exactly why I took my properties back and developed a software to simplify management so I can do it myself. 

How do I identify a contractor as a solid guy without knowing anything about it?