Labor and material costs in the Bay Area are on average $200-$250 per SqFt for brand new construction, so that's where I'm at a loss - even for a rehab of 3k SqFt, it shouldn't be that cheap.

@Francis Ifeacho, there's the cheap way and the expensive way. 

I haven’t quite figured it out but I think he is finding ones that have to be loved and picking them up cheap and relocating them then selling them and seller financing some as well.

A cheap sure way to get the stink out.   

The other part of me thinks this might be a good first property because it's cheap and should provide plenty of learning opportunities.

Should I pay cash for the home if it's cheap enough?

Although it sucks, its cheap tuition to pay.  

A lot of times the really cheap rates are only that cheap if you use a small amount of electricity, once you go over 1,000 kWh the rate goes up....or if you don’t use a certain amount of energy per month you pay a more expensive rate (the cheap price quoted is the price you get if you use over 1,000 kWh per month, use less and you pay a higher rate). 

are they the same shingles with different warranty, or is it the difference between 3-tab and architecturals. if the shingles are physically the same, get the cheap ones.

.- Palm Springs - see that many things are super cheap - vacation rentals, Coachella etc etc. but also hear when markets go down, this area tanks bad.