Once that is complete you take title to the new property by assuming the lease and improvements as the replacement leg of your 1031 exchange.It all sounds like a neat package. 

I do a bit of the leg work on my own. 

So... you exchange your lack of down payment for doing all of the leg work to find and structure the deal.  

As far as considering it an investment property, It’s kind of like comparing apples and oranges tho, since this will be your personal home in the place you want to live (I love Walnut Creek,btw).

It'll take a few months, but doing your own leg work is worth a lot more in my opinion.

Is this going to cost us an arm and a leg and should we be going about it a different way?

@Chris Vargas I'm in Orange County and network with San Diego folks. 

Located in Orange County.

Bonus topic...tips for finding a mentor in the Orange County, CA area.

The Furniture Company and a local Real Estate Agent put up 6 Black and Yellow or Orange and Yellow ground signs on the weekends.