This can bite you if the problem is a habitability issue.Home warranties are designed for people who don't have the means or ability to save enough cash for basic maintenance.

Some things I found that were vital.

This is a new habit for me that I am trying to incorporate into my life and thus far, I am amazed at how focusing on one thing has really produced positive results for me.  

The home has to be habitable to my standards when we finish the rehab.

Are the units renovated and habitable?

I believe you'll find Lenders will not be in the habit of being happy to learn that all of your deposit is also borrowed.

I am by no means an expert and certainly take my advice with a grain of salt, but I think its vitally important to have a clean financial house before you start looking at others.You have debt, you might have IRS issues, and your credit score is in the garbage bin.

My day job also is my main source of income and it helps feed my real estate habit. 

Realtor.com and Trulia show estimates around $95-$100k, which of course would be a habitable house, which this is not currently.  

My question is: in light of his habit of being later and later, is it legal in CA to have escalating late fees, say an addition $100/wk he's late after the initial 5-day grace period?