This will dramatically reduce the net taxable income.If such a property were to produce 10% returns, you would expect a UDFI tax bill of about $175 - $200 depending on what the deductions look like.

It will also be a stretch for an out-of-state flipper too...depending on the price point you are looking at (because you'd have to pay 20% down for a mortgage, then fund the rehab with some amount to a hard money lender...).

Here a local bank does this.The title co will have a network attorney draft the Note and Deed of Trust or Mortgage depending on your state.    

I work for the USAF so it will depend greatly on where I can get assigned.

There is not an easier answer it depends on what you are trying to do depends on your market that you are looking to invest in and what are you looking to do wholesale, rehab fix, buy and hold, note buy etc.

The style of room you are talking about is reminiscent of classic row house; railroad center room, windowless bathrooms (well, they mostly had windows, but it was really only for ventilation through the roof).If it is, depending on where the doors are sagging will tell you a lot about the condition of the bones of the house.

Use a realtor to gain access, or if you don't want to consistently depend on someone else, just pay for a MLS service for investors.

No answer, including mine, on a forum post on the internet, is going to help you as much as a lawyer and your agent if they are knowledgeable in the situation.

Regardless, California landlords will have to be much more vigilant in their tenant vetting process, and not overly dependent on the paid screening services.

Much of it depends on how nice the neighborhood is.