I'd be interested in who, with making some big adjustments, would take on lending this deal.

Revisit previous steps and make adjustments as needed as you go along.

This mortages are usually more expensive though or have adjustable interest rates.

The cost to rehab these homes are not that expensive as many adjusters calculate it to cost but appraisers will hit you with a lower price if it was flooded so need to run numbers to insure you are buying the property with enough room to discount to insure a profitable exit out of the deal. 

Would you recommend floor leveling compound or subfloor adjustments?

I am interested in getting into real estate investing, but obviously prices in Southern California are a bit intense.

It's free to the Landlord and it's a nice benefit to the tenant.Also, you can adjust some of their criteria like automatic denial for certain animals.

I can't explain why it worked but finally out of frustration I decided the only possible thing left to try was "adjusting" the photo I was uploading. 

1 year adjustable rate loan with a local bank.

Now if it were the structure itself or a deck over the property line... those likely require resolution (easement) or price adjustment.