Of course, there are some scaling issues, but that's easily solvable with a paid team.

My only issue is I live in California and always have; therefore, I am not familiar with the market but plan on moving there within the next few years after acquiring a few rental properties.

My issue obviously is the lack of bathrooms.

The "As Is" provisions of a contract do Not prelude a cancelation due to inspection issues, or in the case of FL contracts, simply changing your mind during the inspection period. 

Anyway it is extremely laudable that you took such a bold plunge into real estate investing without the relevant experience, not a major issue though as there are many here that would be willing to guide you. 

Until they issue the discharge and waive their right of redemption, they can redeem.  

Another issue is I intend to put 5% down.

As they settled in and started expanding their family quality issues arose as did the lack of space.

The types of tenants who would pay more rent to live in an A building won't put up with the crime and safety issues of a C- 'hood.

Both tenants are on the lease (were a couple but now are separated due to serious issues involving the Police) and have stable jobs.