Personally, I’m a numbers guy so I’ll first focus purely on the figures you’ve provided (lets assume that they’re completely accurate and you're fully renting it out).

If all aspects of the deal look good, I wouldn't be afraid to buy it purely as a cash flow play.

Is this purely a So-cal phenomenon or do Twinhomes appreciate in other markets as well?

But, for its as-is numbers, I reckon $470k (generating just 0.85%/m gross income) is paying too much, from a pure numbers perspective - because there are PLENTY of properties (around the country) that'll easily get you 1%+ per month as-is! 

It hasn't sold purely because the owners live 5 hours away and are trying to sell in FSBO and the pictures online are still from when his 90 year old parents lived there with ancient furniture and decor. it makes a 2010 house look like its from the 60's.Again, I really appreciate your time to give me your two cents.Rental Income (1400 monthly)Less: Operating expense ($1786 taxes/insurance, 6%vacancy, water, trash, repairs, capex)Less: Mortgage payments (0% interest $850 monthly)CashFlow$16800- 5064-10200+1536

From a pure investment viewpoint (can you get your fiance to think from that viewpoint too?)

Rehab is purely cosmetic and quoted around 5-7K to get it rent ready.

All my experience in RE has been with SF retail residential so when it comes to buying properties purely for investment I'm totally green and looking for advice!!

What you posted RE: the appraiser/AMC responding about what you paid 1-yr. ago vs. value today after upgrading, is, as you pointed out, PURE BS.

It doesn't matter when you're buying out-of-state for pure investment purposes, but when you are going to live in the property (even for a year) I don't think making money is really worth being afraid to talk a walk outside at sunset or have your kids play in the driveway.Good luck with your journey!