Homes tend to settle over time, so depending on how badly they are sloped and if the settling is still active would determine what needs to be done if is does turn out to be foundation problems.

Many people do it to help pay for their personal vacation home which helps justify the 'bad' investment.  

So it's a question of leverage(not being spread to thin), tenant quality/occupancy, rate of acquisition of new properties, etc.

So it's a question of leverage(not being spread to thin), tenant quality/occupancy, rate of acquisition of new properties, etc.

You won't have a short term balloon either which gives you time to market the property and not get pressured in to taking a bad offer because you are up against a balloon.

Most quality contractors buy material from their vendors (not home depot) at a price the public can't get.

The OC is almost just as bad as the Bay area.  

As a former HD and Lowes contractor (lost both contracts once HD found out we were expanding and working for Lowes too) specializing in kitchen and bath remodeling, the margins were always in their favor and it was extremely difficult to maintain quality employees and subs based on the rates they would pay.

Looking for a quality deals.

If in the worst case I break even then I would consider that much better than a short sale and ending up with bad credit.I know I am missing a few numbers in my original post, but I am not familiar enough with them to make approximations as you did.