However, deciding between building v/s rehabbing, depend on many factors but just comes down to what’s most suitable for you in achieving your future business goals.

The "you must update to new codes" issue would mostly be the electrical so since that is something you are already doing, most of your risk factor is taken away.

Offer price: $170,00020% conventional, 30 years, assume 4.5% interest for rental propertyAssume down payment, closing, minor fixes = $40,000 cashMortgage & Interest: $689Property Tax: $218HOA: $241Insurance: $60Property Management: $100Maintenance: $50 <-- efficient ~1,000 sqft condo, HOA covers all exterior (also water and basic cable)Vacancy: 8.33% ($131)Total average monthly cost: $1,358Total average monthly cost w/ vacancy factor: $1,489Expected rent: $1,575Averaged expected cash flow: $86 w/ vacancy impact; $217 w/o vacancy impactCash on Cash: 2.58% w/vacancy; 6.50% w/o vacancy <-- how does that "feel" for California?

I learned that in future deals, especially as we scale to more and bigger deals, I need internal partners (on top of external partners) to focus and run each aspect of the business.

With the units being only 600 square feet, this $80,000 seems more than adequate.Total Investment: $450,000Monthly Rent: $4,800/month ($600/unit)Monthly Expenses:Vacancy: $144/month (3%)Property Management: $400/month (Plan to self-manage but factoring an allowance here)Maintenance: $400/monthProperty Tax: $300/monthInsurance: $200/monthWater: $400/monthMisc/Other: $200/monthAnnual Net Operating Income: $33,072Total Investment: $450,000Cap Rate: 7.35%Annual Interest Expense: $13,950Annual Profit: $19,122Let me know your thoughts! 

Credit is a huge factor for approval.As for renovation, only if the numbers are there.

Every contract can allocate these items differently.I would also factor in property tax allocation based upon July - June tax year.

So by the time you factor that in the 28k difference probably isn't worth it.

Your thought is pretty accurate there are other factors that would come into account like access to plumbing, electric, ease of accessibility for the work. 

While you can force appreciation through rehab, sweat equity, etc, buying at the right price factoring in all of the property's needs will set you on the right path.