Are you actually going and meeting with these sellers?

You actually should be more likely to receive a loan with little money down if you have a larger income, because your debt to income ratio can support a larger loan. 

@Allen Fletcher is right on in his assessment of the actual tax being dependent on past use (actually 500K tax free is the top exclusion if you're married and have lived in the property for 2 out of the last 5 years) and future strategy (depending on your path you could exempt all or part of the tax in a 1031 exchange).Your accountant paints the current picture better than anyone.

As for an attorney for closings, not sure why you would need that, but if you're looking for them, some title companies are actually run by attorneys who specialize in real estate and that might help you feel more comfortable.

I've actually seen properties like that in my immediate area.

I actually did something very similar but on a six year time line a month ago. 

Value in both sets of doors in city have risen approximately 60% as of today.Based upon my small sample size, rents and appreciation have actually increased at faster rate in my Oakland properties.I agree that the work to get the properties up to market rates is not as easy in Oakland, but it is possible with some effort. 

Actually, I responded to an house for sale built in 1970 a 3/2, 1186 sq ft with a  carport and a 10k sq ft lot.

The property has nearly a 100% turn over every year and excessive wear & tear by students.  

I put an offer on a property that was a hoarder house, the only reason it was for sale was because his parents passed away, and all the siblings BESIDES the one that was actually living in the house wanted to sell it.