Good if they stay otherwise you will be getting a new tennat that can actually afford your property. 

Working with people that you fit well with and feel comfortable with is also very important.

Hey Ryan, I hope that my response stays focused here but I'll try to address your questions as this is something that I have actually been thinking about a lot.

Nevertheless, we’ll keep looking for a great deal that would outweigh the penalties and we’ll be comfortable pursuing that route.

My wife and I both work but she will be quitting and becoming a stay at home mom when we move.

Yes, they can cost you 10% a year but that would be cheaper than letting a tenant stay there for rent way below market.

You need to get comfortable enough with the numbers to be able to go with your gut. 

Now the hard part, figuring out if i want to use that to snipe a great deal on our first property, attempt multiple properties at once, or save more and attempt to stay local in SoCal.

Take some time chatting (not about the house) just trying to establish a personal connection and see if you can get an agreement from there.Id recommend bring a blank purchase contract that could be filled out there but dont push the seller into agreeing to something they are not comfortable with. 

As in, a 10,000 person town I'd stay away from - you want a reasonably diversified economy...Here's the main concern I have with your startup plan - Inevitably investing out of your area will put someone locally in a stronger position with regards to negotiating.