Also as I understand it qualification for these loans are based on the property as opposed to the borrower.

There is also the International Property Maintenance Code. 

Holding the property.

The property required a full gut rehab as it had been vacant for 15+ years.

In the area I lived the properties were too expensive (Watsonville CA) so I began doing farther searches out of my area.

Your best bet is a property on water and sewer in a non HOA community and either convert the garage to an ADU or Build a separate ADU .

Found a property which is Sheriff sale, really promising.

But I'll keep you in mind if I come across any residential properties in your area.

Quote from @Dan Liston: Last week I finished foreclosing on four properties. 

My profile has my YouTube channel and I have an episode that shows you exactly how to create the comp set and look at amenities that matter, what others are paying for cleaning and how other listings look - that way you can see how to best market your property.