If the household income is sufficient to meet your minimum criteria to rent, without counting the income you consider dubiously documented, then I would go forward with the leasing up. 

They're hot garbage for REIs. 

Siding, HVAC, boiler, hot water heater, etc. all should be looked at by a licensed inspector. 

It's extremely hot around 100-120, but there's not a lot of profit to be made there.

Especially if the the large items like Roof, HVAC, Hot water were replaced.  

-Value is more closely tied to market comps as opposed to the rental income (though this was a plus when I bought, but probably a minus in today's hot market).Honestly, though, the buy and hold numbers in OC on SFRs would be really tough to pull off in today's market.

I wanted to make an offer but our marlket is pretty hot and I felt it might be a waste of time.

Coastal investors, can you be brave enough to invest in NOT HOT cash flow areas?

Pre 2008 recession short sale flips seamed like were the hot topic and there were plenty of short sale investors making money with quick flips.

@Kevin Lefeuvre - I would argue that one of the biggest misconceptions about Short Term Rentals is that they need to be in some super hot vacation destination.