That said, I'm grateful for the alternatives you present--you're keeping the bottom line in mind, so I appreciate your help in exploring options that achieve the bottom line for the investors. 

Our opinions should not make a difference, if you're doing your diligence properly.You'll just get realtors, or real estate professionals, from both locals promoting their area based off a keyword search for posts like this.

They didn't pay for it, so they don't take care of it like an owner.Before you make assumptions about costs based on a seller's contribution to improvements, find out what they improved? 

We're willing to live almost anywhere in the greater Sacramento area based on what we can afford, provided of course that the property is in a decent neighborhood that has a good chance of attracting responsible tenants.As for budget, I believe we could get a conventional loan for properties up to $600k, but my strong preference is to find a distressed property (or seller!)

This year I may see if if I can get a construction loan to build 20-30 apartments, then refinance with an asset based lender. what markets?

Or, you could ask for a rate quote based on a range of credit scores and you can figure out what they'd charge you on your own.

Business is based in California but I’m licensed to operate in Texas, Ohio, and Alabama in addition to California.

In Oregon for instance unless your doing a PUD open space cannot be required and you MUST create lots to specified zoning density.. in other words if your zoned 5k sq ft lots U cant ask for 7500 sq ft lots you must be within 10% of the base zoning.

I'm a former general contractor and cabinet maker based in New York City.

If we price the home based on what they thought they could get for it, it will sit for weeks/months.