We also do a walk through, set expectations for maintenance, filters, lawn, garbage and go over the function of GFCI's, shut off locations (water, power, gas).

If you have rain water run off to their yard they will get you finned.

Does federal lands have water and sewer running thru it?

The place could also survive on LT rent or seasonal rental, which is popular in this quaint village on the water for Summer and shoulder seasons.It's one of those two-story old 1890 brick buildings.

In fact two week ago I tried reasoning with a brainwashed Pace Morby follower in these forums who stated he would  happily complete a seller finance deal for more than FMV value, effectively putting him under water if he could acquire the property without using any of his money and the property cash flowed.

The HUD inspection the next day finds a water stain on the ceiling and fails the property.  

I know one option is to wade into the waters of private funding.

The water is getting in from somewhere, and if left unaddressed, it could lead to bigger issues down the road.

I love ours but in San Diego the hard water took out our first unit.

The thing I would be worried about is that these two properties will consume your entire life, you will have to overspend on both, you will overdo it on both because of the attachment and will end up with properties that are worth way more to you (emotionally) than to the open market.Your area has starkly rising insurance costs because of fires and the property in Carlsbad being near the water now has strong flood risk so your insurance and holding costs are going to keep going up and up which may hold down the overall value.