I do have a team in place to handle almost all issues, including local family in worst case scenarios.You know, I am torn between investing in high price areas as opposed to cheaper inland areas. 

The average ROI without a mortgage is 6-8 but that does but include the deductions and the fact you can use the place when you want to.

I have been in the construction business since I was 17 years old including those college years.  

Less than $1k/month including insurance and taxes is what I am shooting for.

Considering appreciation isn't a realized gain, why would someone include that in their calculation?

I'd ask him (/her/them) to appraise it as if he was being the eyes and ears of an FHA lender, because those standards are a little bit higher than fannie/freddie, and include health/safety issues.

You should stay at a purchase price including repairs in the $60k or higher range.  

Do your numbers include vacancy at market rate?

Hey I currently own a portfolio including SFR and condos.

You get a referral like you did from your realtor and you're borrowing his or her social equity with that contractor, then I can see the contractor doing a one off.