It's a much more financially sound method (in my humble opinion) than borrowing more, at much higher rates, and banking on the ARV speculations to get you out.As far as the draws for rehab costs...credible direct lenders are going to require either you or your GC to front the first funds for rehab.  

It all depends on what the market rent for this property is since it was not mentioned in a prior post we can only speculate.

Since it's one of the most speculative market, and it has a lot of competition, it seems like you have to take more and more risks to get the deals.I'm not trying to discourage you but try to be extra cautious so you don't get burnt.If I were you I would spend a few months going to trustee auctions, going to a lot of open houses, trying to network with current investors etc.

Anyone have speculation on investing in the Hapeville area, just south of downtown Atlanta?

Yeah, look around the forums for "spec build" (speculative builds).

Isn't speculation fun?

This person could also be a buy and hold investor speculating on appreciation.

Is it simply speculated supply and demand, or is there a simpler approach?

You would be purchasing this property with the speculation that it would go up in value because it's San Diego.

Some areas are really overheated and speculation markets.