Try looking at:The Best Types of Markets for Profitable Turnkey Properties

This implies that an RE investor in San Diego must find other means to profit for a purchase of an SFR to make sense. 

My main focus right now is rental property; something to generate some steady income.

I never want anyone to get to the closing table and be surprised that I made a profit on their home. 

I would use that money to fund BRRRR deals to turn into rentals or rehabs to generate cash for rentals.

We're trying to decide whether to hang onto it, become landlords and use the equity to purchase our next place or just sell, take the profit and focus on purchasing another fixer-upper in an area we foresee appreciation.

For instance, Investing in Phoenix is very profitable right now as is other parts of the country.

If an investor is a limited partner, they must understand that the gross profits will be diluted by the compensation that’s paid to the manager and should have an understanding of how much of the deal’s profits they will receive if the deal is successful.

That gets expensive and cuts into profits.  

Especially at the lower end of the market with rents in the $400-600 range, a PM is going to lose money at 8%, maybe break even at 10% and their profit is going to come in that 10-15% range.