I closed off the connecting door to split the unit into two.

I've done tons of reading and watching videos on Youtube that give very in depth information so I do feel comfortable tackling this deal, but would love some advice as I go through the steps or just someone to come back to for next steps mentorship. 

Just watch what tree you bark up, you could get the wrong dog.The cash balance you hold is great to hear, but how deep are you?

Some quick tips I recommend.First 2-3 auctions...go to watch and observe. 

I imagine I would be close to 75% LTV after light repairs.

I keep all my real estate Investments in Kentucky. 7% or more is the norm for single family residential while in California you most likely land around 3%-3.5% cashflow, you're not even close to cover the interest rate.Definitely check out Midwest states, they offer low entry point and stable rental market.

Rinse and repeat a few times and watch it appreciate. 

Also, what pitfalls are there to watch out for?

In our contract with the lender there is no timeframe stated for when the property needs to close by and the lender needs to be paid.

Also when the weather is bad during hurricane season they will often close the ferry, which can make it impossible to get to the island.