Here in NJ property taxes play a huge roll too.

While the laws vary by state, here is the general answer.Probate is the legal process of transferring title of a dead persons assets to their heirs.  

More than likely it isn't moving due to something already mentioned above but no use beating a dead horse.

I've done the math in the past, and generally it plays out such that going FHA is mathematically identical to having a normal 30YF at 80% LTV, and a hard money 2nd position loan at an interest rate north of 10% for 16.5% LTV (CLTV 96.5%, which most FHA loans are).

Much of it is an appreciation play and not so much cash-flow in my opinion, but still worth paying attention to.

Does the 1% or 2% Rule come into play before subtracting operating expenses from monthly income or after?

There are far better cash flow plays in the US..

2 camps in CA I see frequently.Those who made a ton of equity cycle upside and their dead equity versus the rents they collect has a wide gap.They see California with a host of issues and raising taxes and looking to put rent control on landlords.

The old millionaires who began around WWII are dead and gone, the last bread of business people that had a high school education or even less and learned in the streets. 

Hey @Ryan Ford I think Aaron and Justin did a great job summing up what you can expect and the ideal play for the market here in San Diego.To add on to their input, San Diego is not your typical buy and hold market where monthly cash-flow necessarily makes up the bulk of your return.