@Robert Yousef  Tax foreclosures do not show up on the MLS, have them check their county court house/auditor's office to find out where to find info on those.  

I just closed and was given a check in the amount of both tenants deposits.Right away you want to call and transfer any utilities that the previous owner was paying, as well as call and set up a time to introduce yourself to them, as well as lay out clear guidelines and expectations as to what to expect with you as the new owner, ie. where and when to send payment, contact info and info on what to do if there are any issues that need to be addressed.I just closed on a new duplex and acquired tenants, i called right away and started service for water and garbage for the tenants, as well as met with them in person, I showed up with a copy of their current lease agreement for them to have as a refresher, a basic rental application for them to fill out to make sure i had the most current information about employment, tenants, contact info, as well as had them make a list of concerns and things that need repair. 

So I basically am going to need to shop around for these loans that aren’t standard, but they exist.Right now I’m gathering the funds for a down payment for my first investment.  

It's not that there aren't opportunities here, it's just that my out of state properties have a manager so I basically am retired.

He may be willing to reduce the price by RE agent costs that he would incur with a traditional sale but a bigger discount than that would basically be a gift.Someone that does not have the capital to purchase a SFR in San Diego I would think is unlikely to have the capital to supplement negative cash flow from owning the SFR. 

You cant prove that she stole the $$....so that may be a roadblock in court if it goes that far

As for HOAs, they aren't cheap but they reduce your insurance costs, and assuming you have a good association they take care of capital and maintenance costs, so it's not like the money is thrown away--you're basically just outsourcing certain expenses via that means.

The basic goals are:  1)  Cash flow/month to cover monthly bills; 2)  Profit to pay off personal debt.Once these Financial Goals are established, you can then "reverse engineer" your plan from these goals back to your current situation. 

It's a government agency and basically immune to counterclaims.

Being honest and transparent still seems to go over well in America and in the courts.