I could go on.Case in point -- there's a LOVELY house in my area, on the water, good size, 1/2 acre backyard, great school, amazing neighborhood -- the house has everything going for it.

If you have pictures, place an ad on Craigslist and Postlets listing the unit for the top end of the rent and see how much of a response you receive.Also, banking on a 20% increase in appreciation to get out of PMI is a risky bet so don't rely too heavily on this. 

Rehab came out to be 33k due to the size (1700 sq ft. with 3 bathrooms) and a decent amount of drywall work.

I'll bet you hear the same name mentioned a few times. 

I know all (okay...probably less than half) of the methods like "drive for dollars", put up signs, yellow letters, etc type of methods to find deals.  Truth is...I don't have time to allocate to doing those things and...

Long term, if I hold both properties, I don't know for sure but I'd bet that the Glendale rents and prices will go up faster than Lancaster, as it is more central, more desirable, and has a better job base ...

In your price range/budget, conventional loans are likely your best bet. 

I personally don't think there's a good one-size-fits-all answer for that (I think few here would claim there is).

Will people who live in the property (homestead properties) be a poor bet that they will allow it to be lost at the county tax sale?

To determine the market resale value, utilize Craigslist, Land Watch, Land and Farm, EBay, Zillow, and/or any other other online resource to collect comps for vacant properties of similar size in nearby areas.