We'll see how it goes, and if nothing else I'll end up back with PropStream of I don't find another potential source of Listed and Sold information. 

For instance if he says $20,000 in repairs I’m not that worried and will offer close to where I figured I could offer based on income and expenses.

The whole appeal in REI was to maybe create a small business on the side with my spouse as a way to: eventually secure supplemental income, start building equity in RE and maybe creating a small business together in RE that would help us obtain financial freedom after hearing how risky things can be, I’m trying to learn: what are other RE investors doing to make money despite the risks around home repairs, vacancy, additional expenses (i.e property managers), etc.

SoCal CAP rates do seem to be 5% from the redfin descriptions I read on some of them.I'd much rather buy a 1 million dollar SFH in north county than a 1 million dollar 4 unit in a low income neighborhood. 

Depending on the situation you may find a quad as well that would effectively let you use 75% of the rental income from the 3 units you don't occupy.

The 22 yo graduates from college in computer science and says he is working on passive income this summer-wants to code something that earns passive income.

Always have more then one source looking for financing.

You should both read Lend to Live: Earn Hassle-free Passive Income in Real Estate with Private Money Lending.

If that is the case you will need to hire a property manager who will likely charge 8-10% of the monthly rental income.

It depends on what your starting reserves are, but if you have enough for a down payment, I would look into DSCR loans for financing, as you can qualify based on the property's cash flow as opposed to your own personal income.