Both options are not easy, unfortunately, but this is a process that will be reassuring throughout your career as an investor.

Unfortunately I agree with @Guy GimenezI would have trouble even trusting an out of state PM with my property, nonetheless a bunch of contractors that you don’t know and you aren’t close by.

But investing OOS intimidates me by not understanding the local area as much and relying on obtaining quality agents, contractors, and potentially property management.Does anyone have any sound advice for the best step in securing a long-term financial future for someone in my position given my location/circumstances (San Diego,CA)?

Agree on the appraisal strategy, it is an unfortunate aspect of life.Disagree on preferring bigoted tenants that may pay more than others.

Of course start with letters and payment demands but then move it to the courts, get the judgement and do what you can on the collections front.As others have said PM should be leading the way on this  Unfortunately I believe the opposite is true.

Unfortunately on a development you need to do a lot of the work up front to reduce your costs. 

This is most likely going to be chalked up to an unfortunate act of God/nature and no one is negligent.  

While purchasing through your LLC seems viable to protect your assets, each state is so unique in how they handle property in circumstances such as yours.

There are some circumstances where I tell the tenant I need time to look into something. 

However, your situation sounds like it would be considered extenuating circumstances.