It’s cheap ($20/mo), you can have the buyer pay for it and they keep historical record for all payments and send out all end of year tax forms as well as billing statements etc.

I did want to add that this property was build in 1920 in a Historic District of San Diego.

We are in a historic low period for rates and it's a competitive market out there. 

Also, there have been un-permitted renovations without either city approval or historic district (hyde park) approval.  

Conventional, owner occupied, 5% down, during historic lows for interest rates.

You can borrow at historic lows to invest.

Driving to the rehab site every day, being sticky hot, listening to contractor bs lies, dealing with blood sucking government officials, historical societies, standing in line at HD, owner liability ... need I say more.This is a great thread by the way, BP tends to focus on the greedy lender, but there are two sides to that story.Another thing I've noticed: Everybody should be concerned about costs, if you aren't your not a good business person, plain and simple.

My situation is perhaps a little unusual in that I have a relatively new big tech job where about 50-60% of my compensation is coming from variable sources (RSUs, bonus, ESPP, etc) but I'm told lenders won't consider those forms of variable income until you have a few years of historical earnings for them to mull over.

Best cash flow is achieved in working class areas  3/2 duplexes are much harder to find than 2 BR.San Diego has great historical long term rent appreciation.  

My partners and I are about to close a deal with a landbank and private lot owners to develop 50 Modern entry level homes within walking distance to an awesome (recently renovated) historic downtown.