That's just a consideration but I think it will go a long way in terms of your learning curve.

Then again, I'm just learning all this so maybe I'm wrong but like I said, it seems that homes in very poor condition are selling for more than a rehab would cost to bring them up to comps in the area.I would imagine that what I want to do with the place is nicer than what I would do with an investment property so that will definitely coming to play with regards to the price of the rehab, but I wouldn't necessarily call it a "dream home" because for me a dream home would be completely custom top-of-the-line everything, like 300k rehab or new home at $200/sqft.For this I'm really looking for primarily structural changes and then say level 4 out of 6 in terms of quality spectrum.

I've been doing my homework and just getting to the point after a few months of analyzing properties and reading all the standard books where I'm going to look at properties that meet my criteria for cash flow & are in my wheelhouse in terms of price & renovation needs.

Hunt for what you already see the investors buying in terms of bed/bath/SF/garage

You are not putting in money on the deal.I'm aware that there are many options in terms of investor financing.

Single family homes have only appreciated a tiny bit from last summer to this summer in terms of average sales price (we are talking like a couple thousand dollars - barely noticeable).  

I actually went ahead and calculated out the difference in option A and B in terms of interest and its really only $1000 difference.

I think one of the big issues that isn't being addressed here is that the Bay Area used to be pretty homogeneous in terms of tech; this is no longer the case.  

I am happy to chat with you in terms of your investing goals and give you some direction in terms of how to get started. 

Having all of these exit options simply allows you to bend and shape the exit, both in terms of timing and strategy, to accomodate the whims and desires of the marketplace, which I think will drive investor's returns!