So i got on Home advisor to look for someone that could give me a quote on fixing my chipped steps and i was quoted $800-$3300 just to fix the chips $3300 just to replace all 5 of my front steps he said he used some of the best quality cement $25 a bag the good stuff he said and it would last longer.

Portfolio lenders can also be a valuable source of advice and guidance as they are typically looking for a long term relationship with quality people.  

It looks like you're barely getting 1% in your examples above and in my opinion you'd be better off buying in a better quality area and getting a 1% there.

They would get higher quality rentals as it benefits the owner, but would reduce the overall number of properties as people with lower rents would rather pay a % than a flat fee.

I don't have the risk tolerance nor the patience or oersonality to deal with low quality tenants.

We bought a duplex, and our realtor told us we'd get  around $400 per side... nope.. we fixed it up and now  get $675 per side... the quality of your rental will reflect the quality of your tenants.  

I wouldn't use this for an entire web site project as the quality of the result won't be great and you will find yourself spending too much time managing the freelancer and making sure they get things done.

One warning, though, they won't likely appreciate as much or fast as Glendale (which is how they got to be less expensive in the first place), prices will be more volatile (they'll get hit harder in a downturn) and cashflow while initially larger will also be more volatile (lower quality tenant base), so there is never any free lunch.

If you don't need the money, I think you are right.1031 is probably a fantastic idea.....that means a qualified intermediary holds the money...and you take that money and turn it into more or different property.Rent in CA is often low in my opinion.Here in TX for example I would expect probably $8000/month or so on $850,000 on good quality properties.Appreciation is good here now, but that probably will not always be the case.If you manage yourself, look at the lease.  

You are therefore taking on all the risk, and relying that the rehabbers are going to do what they say they are going to do with the quality you expected and in the time frame expected.