Finding a nice home matching that criteria along the Southern California is not difficult.

Finding rentals where the numbers work is difficult, though it can be done. 

It's difficult to get anything from lenders these days and it's starting to get worse due to the pandemic.

This was a divorce situation so it was difficult to get them both on the same page.

I would think a lot more difficult (we have had OOS property but did not attempt an OOS BRRRR, but we have had to rebuild twice OOS after hurricanes and that was not easy).We have built our RE holdings largely via San Diego BRRRR.  

It's not only expensive, it's also very difficult to be a Landlord.

Has anyone done a wholesale deal with a tenant inside ? Is the process any different from a vacant home?

At least with collections it will go on their credit and possibly make their life more difficult over the next few years but honestly, with tenants like this, they will use their cousin's name on the next lease and their grandma's name on utilities.

How difficult was it getting them to do a before and after rehab value appraisal?

Once SFHs hit $120-150k or above, the price-to-rent ratio gets out of whack and they are very difficult to cash flow at your criteria, if at all.