This is my first post and I thank you in advance for sharing your expertise.I currently have a real estate perdicament for which I could use some advice and I expect that my experience is a relatively common one.I currently own a 3bd/2ba SFR in Oklahoma City (OKC) which I purchased as my primary residence in February 2016.

For conventional, expect 25% down at 5.5% for 30 years fixed now since rates have risen. 

It is my understanding that banks are not required to fill out any type if disclosure when selling reo properties because they cannot be expected to know anything.

I was trying more to point out that a whole lot of investors would follow Joe's or Sean's advice, and do well, but that we need to decide for ourselves what we want and what issues we're willing to tolerate with our investments.The "better" the neighborhood, the lower you should expect your return to be.

Bay Area real estate investment requires a different expectation than other part of the country. 

I imagine with the right buyer and a solid contract/expectations it is possible.My biggest issue would be the appraisal.

Assuming your numbers are correct the property is not good cash flow for a rental even using San Diego's low rent to value expectations. 

I expect the HELOC to be about 150k.

You'll either decide that you can get the rents and property to where you expect them to be regardless of what the current owner has done.

The other way is you'll get hit with special assessments when you least expect it.