In other states, HOA fees are minimal, but here in California as you have seen, HOA fees can be us to $500.

Do I ask the contractor if they charge a fee for rehab estimates?

@Lee Underhill if you can buy $80k condos, with reasonable association fees, and rent them for nearly $2k per month, buy every one you find!

When I was analyzing deals in the Private Equity sector, I saw everything from 26% - 42% IRR needed depending on the size of the company managing assets, additionally how many Management/Fee company's are factored into the business model and at what point in the expense model they're collecting fees.There are payroll, Marketing, Office space, etc... now a part of your business model, acquiring an asset for cashflow becomes a small part of your equations. 

I have an investor from out of state that's willing to offer 10% interest only for up to 12 months with a 2% origination fee and a minimum note of $50k, but I would prefer to utilize a hard money lender here in the Indianapolis area.

PenFed requires you to be a member, but you can just sign up (and pay a small fee) for one of the military support clubs and qualify.

:40-60% gross revenue (after cleaning fees) for either 2 years or until the investment is recouped then 5-15% cut in perpetuity. 

A FHA loan may have more fees and a higher payment because of their charge for like property tax and insurance. 

Be careful to read about broker and other fees, or you may end up spending more than you expected.

The one I looked at, the platinum on Koval (this was 5 years ago when I wanted to rent it out when I wasn’t using it.) doubled the Hoa fees for every week beyond 2 per year that they weren’t allowed to rent it out.