As many have voiced - you have minimal chance of recovery from the Builder, due to expiration of Builder and Structural Warranties , compounded by the fact property was also an "As Is" Foreclosure. 

Our job growth is stellar, the scarcity issue will compound-  read the growth management act and the buildable lands report and you’ll be blown away by how few single family homes are coming online.  

Good to go if all goes well, but if not then interest compounds against you?

For sure I remember the past 80s and 90s busts ( cold war ending loss of 10000s defense jobs) and there was way more buildable land 30 years ago, still mostly way outside LA proper back then in Simi, Conejo, Santa Clarita or Antelope Valleys.

However, I can do a significant update and make the right repairs with the numbers I see right now, but I cannot justify over-rehabbing when the intention is to hold as a rental and in a market where it doesn't make sense.I don't mean to sound defensive, but please tell me if I'm missing something here.Don't take that as you'll be a slumlord, you're right, many begin with low end properties with good intentions, but the economic constraints begin to play and pretty soon, you won't put more money in because your return is the most important aspect.

But don't just sit still. 2) if it sounds too good to be true, it very well might be. 3) advanced age has lost the benefit of compounding interest, but (hopefully) gained the advantage of being able to better sniff out what feels right and what doesn't.

No defense.

This is the bank's version of both compounding and "own nothing, but control everything".

Appreciation and rent growth have not been linear but in every decade at one point the figures match up in that the property has doubled in value and rents are up 6%+ compounded annually.

At best, the homeowner will likely be defensive and irritated.