Cost of labor has gone through the roof, as with materials, property tax, insurance, and even utility cost.

Presumably someone does your tax returns, ask them.

Most properties in my area have property taxes between 3K-4K.  

An added bonus is that you will also boost the portion of your payments going to interest, which increases after-tax cashflow. 

Say a 550,000 loan with 25% down at 10% interest on 15 yr vs 30 yr. 15 yr monthly payment-- $4,40030 yr monthly payment -- $3,600Does not include property tax 

I suggest Nevada because of the proximity to CA, landlord friendly, and low property taxes.

You can cash out refinance, allowing you access that equity tax deferred. 

A local credit union also mentioned something called a "savings secured loan" which can be used for anything (even going on vacation), but I don't know if there are tax benefits to that and I don't think I can do that under an LLC.  

Someone still has to cover taxes, insurance, and upkeep during the foreclosure.

So essentially you will need money for ten percent of the purchase price, the first portion of the rehab, and holding costs to pay the hard money payments monthly and taxes/insurance.