You also have less competition since most other wholesalers are going after the residential stuff. 

@Julia ShevchenkoHi Julia, CLEARLY lease optioning isn't (and won't be falsely made) illegal, as 'rent to own' is already a HUGE business, with the same 1300ish global 'public company' preferred shareholders, working for the PTB.

In essence, I'm trying to buy it before other competition comes around.  

You can see how slowly, over 100+++ years the democrats have inch by inch changed these once booming and magnificent metropolis into a welfare dependant state, with the mentality of the people changed over time to give up their liberty and freedoms for a handout, all in concert with the corrupt education system and its left wing teachers to indoctrinate the sheeple into the global community.

Is there in fact less competition for bigger deals? 

I haven't been to the OKC REIA meetings in 3 months because Thursday is my Softball night--it's a church team but competitive. 

Start up money - You can negotiate seller financing, purchase sub2, raise private money funds, hard money is also an option but expensive and without any of your own capital and experience, very difficult to get 100% funding.Finding deals - MLS is one option, though competitive, you must make lots of offers and negotiate the right deal.

It's what they call "icing on the cake".http://www.biggerpockets.com/real-estate-investingYou asked about subject-to, this may be a great niche for you in the competitive SoCal market, I would strongly encourage you to learn more about it.  

I like your plan.I live in Hayward and think that Fremont is a very competitive market with very tough numbers for investors. 

., but there is a lot of competition here in Richmond and you are correct, it has been a struggle.