I tend to like the type of rehab rule approach better. 

Talk to the city planning division before you approach the council and see if you can do a public records request to obtain the property’s permit history. 

I would like to work my local market in California but what sellers ask for doesn't seem to leave me with any working deals and working direct to sellers/buyers out of state has its limitations.Would you advise to persevere in California working direct with parties or taking the virtual approach in a different market?

They should also be aware that you will direct the downstairs tenant to approach them about noise complaints and you expect their cooperation.Downstairs tenant - they are below someone else which means they will hear foot steps and thumps as things are moved around.

You'll hear some of the larger folks with multiple properties chime in that this approach isn't scalable. 

So far, I've tried the "spray and pray" approach reaching out to a handful of lenders and have not had much luck yet.

@Ryan Taylor  There are several approaches you can take, depending upon what the homeowner is willing to do, what you're willing to do, and ultimately what the numbers in the deal dictate. 

The market is in my favor.If anyone has come across this in the past or has any insight on a better approach, I'm all ears!

Purchase Price $241,000Rehab Costs  $296,400Appraisal: Sales $560,000Income Approach $666,188Cost Approach $602,005  I do feel the sales approach is super low for this market since everything has been rehabbed it will give me a big chunk of my money back. 

I don’t know what are benefits to this approach other than perhaps a safety net to learn about owning property and managing rentals.