They've been among my best earners, but I bought them well aware that I might have a hard time selling them and planned my life/portfolio accordingly.Since you've already registered a concern about exiting this property if I were in your shoes I'd perhaps reverse engineer from that concern to see if that is in fact the type of first property you want to buy and own.Now, buying us good, and having an exit problem is much better than not owning and not having any ownership problems so just make sure you want to own THIS one, but even if you don't, don't let it dissuade you from buying a deal this year.

I study the terminology/concepts since high school since i just graduated college 6 months ago in finance im more aware of things and just want to make sure im heading the right direction.

There may be a few more I'm not aware of.  

I know he is well aware of the foreclosure because he's been fighting it for years and 3 times filed an emergency motion just days before the sale day forcing them to reschedule, this time he filed the morning of the sale, the judge denied the motion and the sale happened. 10 day redemption period has passed and CT was issued. 

You can also sit on it until equity comes back (being aware of statute of limitation).

We all are aware if you say one wrong this to some of the higher echelon asset mangers you can/will get hung up depending on the individual.

Also, be aware that there may be several other smart upgrades while you're doing the plumbing that are worthwhile, but more disruptive to tenants.

But perhaps more importantly, since you insist on DIY......your title insurance co. didn't catch this, so I'm guessing you had no title search done.....that can be suicidal.....other than over due property taxes, there can be all kinds of issues you're not aware of.

He stated that this owner received 25 other mailers that same time.The realtor was asking me if I am aware of any sources that find information like this.

You should recheck your income and expense math on based on your new mortgage payment if you are planning on taking cash out.But if you need to move out of state to make it work financially because of San Diego's high prices, that is a more personal decision beyond just the investment analysis and you would have to manage your first rental from out of state, not the best way to start on your first rental.Also, you should be aware that you would be giving up the $250,000 single/$500,000 married capital gain exemption if you did not sell your primary within three years of moving out.