How do you find these distressed home owners without paying a ton of money for some of these lists?

You first bill them and see if they'll pay. 

We're currently saving up enough for a 20% down for a conventional loan to bypass having to pay for PMI and MIP, as these 2 additional monthly expenses are a "make it or break it", in finding a cash flowing property in California.I would love to know what your story was like when you first started your real estate investing journey!

As long as you can hold onto the property you can continue to get the appreciation, principal pay down, tax benefits etc.

If you are worried about something reasonable, you could pay someone to drive by the property every month.

Also they may need proceeds from home to pay for other liabilities.but let’s be honest when a family member passes away do people want the money from the estate immediately or they thinking to get it paid over decades?

Feels like its smart to sell because if i pay for a new roof or hvac my cash flow will take a long time to get me even on that out of pocket.  

So all of my income goes toward paying down the principle.

Always get title insurance and pay more for extra coverage (it's usually cheap for the extra coverage).10.

To verify their ability to pay rent, you should collect bank statements, pay stubs, W-2s, tax returns, K-1s, 1099s, and any other income documents they can provide.