@Joe B.The "stepped up basis" is a provision of the IRS code. 

., building code violations, drug activity, squatters, loud music, loitering, littering).

(Unless it's not up to code for the area / un permitted construction ).

You should figure out what your Niche and Strategy would be first.The Best Beginner’s Real Estate Investing Course OnlineModule 3 explains Niches and Strategies.I will be Flipping Single Family Houses (to make Cash) and reinvesting that cash in additional flips and also Buy and Hold Single Family Houses and Small Multi Families up to 4-plex for long term.I have not narrowed down my Area (Zip Code) yet.You could also House Hack your first Property while LearningHere is another post similar to yours:https://www.biggerpockets.com/forums/12/topics/413684-i-pondering-what-to-do-next-want-to-make-a-good-investmenthttps://www.biggerpockets.com/forums/12/topics/413149-what-direction-should-this-newcomer-go

See California Civil Code Section 1102, 1103.  

Yea it's about a block away from northboro elementary. 33407 is the zip code about two or more blocks east it's a spotty area but the block that it's on and east from it has a combination of 400k+ houses and multifamily properties.

In Southern Cal you can look zip code to zip code and put an average PSF $ on properties.

All entry doors (in Calif) must be solid core, not like hollow core closet doors.Depending upon the floor plan, you may also need a fire-door rating -- just ask the City Codes department.

Check fair housing codes and your state landlord tenant regulations.

Instead of driving all over town looking for distressed properties  why don't  you just look at the housing code violations?