As I am reading around I am wondering if this strategy occurs or is even possible.  In buying a home for myself if I notice a house that has been for sale for a while or is for sale maybe through craigslist is it poss...

Andy, Solo 401k plan is not for everyone (you must be self-employed or own a small business without full-time employees other than the business owner(s) and spouse), however if you qualify for it - in most cases it would be a much better choice for most people (you don't need a custodian with it, you don't need an LLC to gain the checkbook control, you can borrow from your plan up to $50K before retire, just to name a few advantages).

Success is a process, failure is a choice

Yes, I do have to agree with you that owning a property in the bayarea for primary residence is not wise from an investment standpoint, it is simply a personal choice.

I think what @Charlie Fitzgerald was saying is that they had taken the unwise choice to not purchase insurance, maybe because they owned it free and clear.So if this is true, it's an example to you of the stark reality of not having insurance (again, in our case as investors, it's crucial)Regarding the previous contact with the owners, things change, minds change with time.

If you can't find houses that need rehab in your stable neighborhoods where you can earn equity through the rehab and eventual finance process with the portfolio lending rates, it seems your other choice would be to look outside your current investing areas for greater rent/cost returns. 

Success is a process, failure is a choice

Success is a process, failure is a choice

I was actually hired by the State of Oregon to help my son become self-sufficient.

Success is a process, failure is a choice