It's in a part of town that is being revamped from former industrial to nice stores, shops, restaurants, and businesses and I believe there is even some money offered to help revamp that part of town if you purchase something and help improve the area.  

I am opening a business in Mexico city (Hair salon) for my wife so get some short term income, Also I am heavily invested in the US stock market but at this time it is not going no where until we have some rate cuts. 

The amount of new jobs has already begun to stimulate the economy and small business growth.

I will give you the numbers then tell you mu strategy idea. house purchased for 415,000 in august of 2020 at a sub 4% rate but I treat it as 4% because I am not 100% sure what the rate is (I am getting into contact with realtor soon don't worry)The house could rent for 2,500 per month at minimum and I think I could get 2600-2900 but not 100% sure.It is now on the market for 600, 000 but I think I could get it to 575 since it has been up for a couple months.well 575,000 at a 7% APR is way higher than the rent so I was thinking I could do a seller financed route.

You might use different strategies to increase the income from the property.

It's the most important document you have as a tool to increase revenue, reduce costs and liabilities, and be able to enforce the way you do business with tenants.

It does seem pretty busy around the ‘ville!

Prior to this, I had 2 years of good tax returns from 1 stable job as well as my side business. 

What should I expect and watch out for with these strategies in Southern California?

A good home Inspector does not do 'Code Compliance' inspections, it's none of their business -  except to maybe just mention it.It's time to see how badly this buyer wants the house IMHO....