I needed to spend over $10k to fix up the house and resell it.

Regardless of renting or selling, I'm looking at spending around $2,000 for smaller repairs which include paint, replacing carpet in the basement, and replacing a bathroom vanity. 

So planning and budgeting for about 6 months or 6 touches will get you going in the right direction.Also, don't be afraid to mix up the mail pieces.

I know that the builder will want to put in a nicer fence but I don't have any room in my budget for a new fence on the side of property with the house on it.

I would look at craigslist, facebook marketplace and your local REIA for possible leads, but make sure you spend the time to determine it will work for yourself and do not rely on what the other person gives you for rehab costs and comps.  

I would be very careful with budgeting based off photos and no experience.

When I tell him all of the ways you can account for these things and budget it into your expenses to make sure you still come out on top, his counter is "then why isn't everyone doing it?"

Repairs and expenses are deductible, but you only get back the taxes you would have paid, so you are spending a dollar to get back a quarter.

Too many red flags to even bother spending any time considering.

Preference is to Silicon valley where i live, but considering over heated market here, think investing nearby may not be possible for my budget (about $450K)However there are few areas like Richmond, Stockton/Tracy in this price point, but not much upsides there.