The owner is all set with re-zoning, but the parking lot was a pain to re-design to maximize the units we can add in.  

I would keep the property and keep my prop 13 protected property tax saving and leverage its equity for the necessary improvements as a minimum. 

You'd be saving the $1300 a month in CC debt, and think about the higher interest rate you'd be paying on the a new mortgage because of your lower credit score. 

But for those who decide to keep the property, they often go in search of a good property manager to implement their grand plan of maximizing rent in search of the coveted passive income.

Also in terms of insurance claims do people have to wait for the claim(s) to be paid o before you purchase/acquire the property (land/lot)I am talking about a strategy I want to use in CA and I want to save money and have a lot of time I can exchange to get/acquire land potentially 

THe whole point is not to have to live in it for 2 years to save on the taxes. 

@Gustavo GonzalezFor those who are able to save more than $30k a year or have substantial liquidity (over 200k), being a landlord and especially flipping is a lot of work.

It will save your Dad's helper from falling behind on taxes.

Does anyone with experience recommend any certain deductible or should I just go with the highest deductible/lowest payment in order to maximize cash flow?

Most of my savings would also go into this deal and I wonder if it would worth it?