S/He's probably already got one foot out the door and is just waiting for someone like you to come by and offer to buy it at a reduced rate; because after you pay contractors to bring it up to a good standard you still want to be within the FMV/ARV.For you, though, the biggest thing is vacancy rate and income.Nonetheless, if I were you I'd be happy to pay a wholesaler. 

@Daniel S.Don't forget that there's a 10% early withdrawal fee (age > 59-1/2) in addition to the taxes.

Becoming an agent has costs to operate Day 1 which includes: additional car insurance (required to drive people around), licensing fees, dues (state and national), fees to operate a Supra key, to be on MARIS (MLS), prepaid legal fees, etc.

We have been living with the house as-is, and a found a number of additional problems with it.  

Additionally, since you are earning a good wage you qualify as accredited investor.  

I'm a SD resident entering the game and buying two SFH's in the KC, MO suburbs and am looking for recommendations on local (San Diego) CPAs that specialize in REI, and specifically have a knowledgeset for investors with holdings outside California.In addition, as someone starting out with their first holdings, any recommendations on things to specifically knock out right off the bat with my new CPA would be much appreciated!

This translates into $204K over the life, in addition to the small down payment.  

Lastly, with foreclosure there may be additional debts on the property.

You'll limit your upside but reduce your risk.

In the last 13 months I received my license, bought 16 rent houses, flipped two houses with 500+ sq ft additions, and scraped three 1000 sq ft houses and build new 2600 sq ft homes.