Family member has to sign grand deed for gift but I'm afraid I'll be taxed on equity gift at very high tax rate for California gift tax.

I've learned so much but the fact remained that I was afraid to get started.

There are few less expensive houses (around 300k) but they are in far worse condition, I am afraid to touch them.#2.

I went to the town clerk and obtained their address but am hesitant on making the visit as I do not really know how to approach them for the sale and are more so afraid of a rejection from not approaching them correctly.Can anyone lend some advice or strategy for me to intelligently approach this home owner?

Don't be afraid to make mistakes, they will happen and you will learn from them. 

Don't be afraid to reach out call people.  

Even tax deed and liens that many people hype about, you need to have a team on ground to do the leg work.Am afraid, I have to agree with @J Scott : if you don't want to leave your house to do the business of REI, you will need to look elsewhere.

Guessing there are two reasons investor types don't ask an attorney, 1. they are afraid of having to pay something (many attorneys will give a few minutes of free consultation) and 2. they are afraid of the answer not being what they want to hear.

If not, don't be afraid to bump it up to 90-100-110% of asking price.

:)  However, I will give you a couple of tips that no one told me: Don't be afraid to work outside your normal area.