. :)Hype will help you get motivated, but I wouldn't take it too seriously.

Tell us exactly what you're trying to achieve financially, lifestyle wise, business wise, etc, etc, then it's easier for us to tell you based on our experience if investing locally or out of state makes sense. 

So I'm a newbie and have a question...if there is a motivated seller whose house is upside down and perhaps have stopped making mortgage payments what happens to the mortgage?

Under these circumstance a flat brokerage fee of $3,600 could be reasonable, justified and with a motivated seller, agreeable.

(Think herd mentality)Nothing new, been through a few of them,.....I checked that one prop the OP posted, those are everywhere, non cashflow, lots of renovation needed types of places.I say, "let 'em sit for awhile and stew" better deals for those that wait and keep looking around I'm thinking.Yes, LA has a housing shortage currently, and it's not the first time.We're in no hurry to buy at the top of any cycle, especially considering the sq ft costs being achieved right now in sales.Might be cheaper to build new in another state than pay $279 per sq. ft here with less than grade A tenants,...Unless throwing 120k - 150k down is easy for you for 1 property,....I say go.I'm not so rich I can afford to be cheap, (or silly) with my dough.my .02

But my ultimate goal is to apply the buy and hold /"BRRRR"(buy,rehab,rent, refinance and repeat.)plan to Achieve my financial freedom .

It would probably be up to the landlord to do that but he's being paid on time whats his motivation? 

The property might be able to achieve higher rents but that doesn't mean the owner wants to do that.

Since that can be achieved through income or wealth, a variety of strategies could be appropriate there.A more specific goal is to partner with an experienced investor to acquire one cash-flow-positive rental property.

“It is extremely important for everyone involved in the seller finance industry, from the small business owner to the potential homeowner whose only path to homeownership is through seller financing, that we all join together to make a concerted effort to achieve regulatory relief from the burdens, a lot of them as a result of unintended consequences, from Dodd-Frank and CFPB legislation.