It was a very lucrative strategy that we enjoyed for quite a few years in the old days.But they started restricting us with a 'speculator clause' & in the spec condos they restricted rentals, Consequently, it became an cost issue having a partner move in for the 12 months 'seasoning' period.If it was available up here I would definitely be into it again.

Jacob Irving The market is tough in SoCal similar to San Jose as others have mentioned .Definitely a speculative /development /flipping market nowadays versus a buy and hold cash flow market .Those that are doing well with rentals bought years ago before the big run up in prices or they inherited properties from family and have them paid off so they can live off the cash flow .You’ll want to have enough money for reserves to pay for maintenance and repairs and not be stretched to thin.I’d focus on earning income and saving .

Would it be speculation to expect another 100k in the ARV or is it supported by comps.

If you are looking to speculate, then find something on the edge of the redevelopment zone and see if you can afford to sit-on it for 12-24 months (even then it would be practical if it could carry itself at least 80% or more).

You don't want to speculate by making assumptions based on news you've heard.The better question to ask is: Is it a good rental market now, and can you find good investment opportunities today?

Its speculation.

Everything changed after the housing collapse though; as all the speculators were wiped out, and the new price points suddenly made a lot of sense for flippers and their new buyers.  

Though currently, solely from a cash-flow (not factoring in speculating on appreciation) standpoint, I would be hesitant to take this deal even if I could assume the mortgage without having any money into the deal.

To be completely honest, Nashville is exploding right now and while I know we don't like to speculate on appreciation, you will likely pay retail in this market and still experience strong appreciation for 2-3 more years.  

On my speculative investing on want a minimum of 20%.