Otherwise they would not be in existence anymore and more states would not adding them.

It's in a very desirable area: 1 block from "restaurant row", 1.5 blocks from train stop (BART), 2 blocks from freeway entrance, and 3 miles (15min car ride) from UC Berkeley. 

But Rehabs, regardless of the quality of your Pre-Purchase Inspection or the Contractor you hire to do the work always seem to need more extensive (costly) work once you start tearing things out.   

Alan Lambkin is it truly a D class property?

Maybe I got lucky, maybe it was the very extensive screening process we put them through but I can safely say I wish all of mine were as good as the Section 8 tenants.

The odds that first meeting leads to a wholesale deal isn't high but the added experience will always help with the next visit.

One of my clients did this, and has extensively remodeled her home. 

End result was living in a much better house in a much better location for a net cost of less than my previous house plus it added another rental "unit" to my portfolio.

Our setup has us splitting losses 50-50 as added insurance to the investor and as a way to show i have skin in the game. 

Why don't you take some pictures and put up a test ad on Zillow/Hotpads/Tulia to see if you can get high enough rent to make your primary residence cash flow?