If the owner could sell the house and pay off the mortgage, they probably would have done so already.

He says he doesn't have to pay us capital expenses because we didn't actually pay that, the previous owner did.

If you must pay, offer to do free work for a rehabber, tax lien buyer, or just dpent time in tax office, I have and it works!

Also, most of the stuff your list is low cost which is great, but once you start getting the deals and paying yourself back on the direct mail, double and triple those actions too (of course when you to a place financially that you can do that effectively).  

I think I have to pay $$$ if a lawyer generates the forms so I don't want to do that.

The best sponsors build their reputations and investor base on long-term performance and trust.

I will never buy in lower income areas (Class C)  regardless of state and with the landlord tenant laws in CA, I'm apprehensive if I need to evict a tenant who can't pay rent or causes problems.

We have created a contract that states i have to pay them back within two years via  refi to get it out of their name and into mine. 

I've learned some hard lessons with tenants, so I'm totally ok with not letting her renew, but also if she's been able to pay rent with unemployment maybe it can work? 

If it's standard for the tenant to pay and the property is submetered then no problem.