(I see you are in Culver City, make sure you drive the area and walk around to make sure you would enjoy living there) If the market goes down and your property is worth less are you still ok holding it?

It could be in your best interest to sell the property, walk away with the cash, and reinvest it into your first flip. 

In order to find out the rehab estimate a contractor will need to do a walk thru with you, determine the level of rehab and issue you a construction quote.

I've been able to walk through a few properties here but I'm mostly already priced out of my favorite neighborhood.As a result I've been looking at Canaryville, McKinley Park, Pilsen (also pretty heavily priced out of) and Brighton Park for investments.

And the crazy thing is, I literally just walked into it and it clicked in my head.

Also, in your opinion, is there more value in being within walking distance of a bus route vs. not?

It essentially is as simple as walking into a bank and applying.I really don't know anything about FHA 203k loans, but most loan officers who handle FHA should.I would check your lease.

Now, the advantages of having it in house with the turnkey company (or at least closely associated) are several IMHO:1) they are motivated to keep the investor happy so that investor will buy more properties in the future2) it doesn't have to be a profit center, as the company is making money on the sale3) they are more accountable: the company is not just selling you a property and walking away, they have committed to working with you and your investment for years to comeIt is of course possible to put your own team together, realtor, etc and many investors do that.  

How many properties have you guys actually walked through?

I have completed three walk-throughs and look forward to making my first deal.