If the property has not appreciated in the past couple of years I would be hesitant to keep the property based on long term appreciation. 

You can rent the property as is and base the rent off of the condition.

I'm aiming to focus on building equity over time through appreciation and debt pay down.Is anyone investing in SFHs in that area?

I was not gonna move on to a new realtor because he did show me a couple properties and use his time but I don't like the feeling of being pushed and based on the answers I'm getting here it's the right thing to do. 

If you buy something in San Diego, now that debt is sitting on your personal balance sheet for 30 years.  

I'm an investor based out of Longmont and do a bit of real estate investment coaching as well.

Hey Daniel, If you are qualifying for a DSCR based loan, you do not have to do the extra step.

Our property management company is based in central Charlotte, about 30 minutes north.

My estimates are based on personal experience having done a fair amount of renovation on my primary residences and estimates from friends and family who are contractors.

Essentially your net return is going to be around 7%. 7% with 90% LTV with a borrower who may or may not have been underwritten properly - If you asked any investor "would you invest in a debt fund that pays 7% net where the loans are 90% LTV" and people would say no way.