There is rusty water filling this hole and it is very slowly leaking over the edge of the hole,  across the lid to the nearest edge and running down the back of the water heater in a tiny stream about the width of a piece of string.

Your tenants will eventually pay off the note and you will have a very nice income stream. 

Collapses and blockages in sewer lines lead to overflows into nearby streams and basement backups.

This morning they came and took their ladders and tools only and left all debris so when I took my lunch break today I went outside to remove the debris because I was scared my 4 yo son would venture outside and step on something or have something fall on him and in the process I stepped on a huge nail that went right through my shoe and now I am leaking blood and in terrible pain and still had to return to work so I don't have loss of wages.. 

What's nice about having more than one stream of income is that you can have something happen to one stream and still make money.Assuming the situation you propose- the property doesn't have any equity because you bought at market value- if you buy right and have good cash flow, and you also have the tax benefits, you have a good chance of profiting. 

Requirement of a private lender is 1. they are related to you, blood or marriage, or 2. you personally know the lender and have past business dealings. or 3. you have been introduced to the lender who has past dealings with a business partner of yours.

Landlords are really concerned about consistent income streams.

Since I'm giving up any future appreciation my focus is entirely on maximizing cash flow, and I want my buyers to stay with me as long as possible (otherwise the income stream stops and I have to replace it).It's not really a question of whether it's 'better' to do a rental, a lease/option or owner financing.

It seems crazy that residential loans are 3.25 for the same product and residents don't even have a rental stream.

My personal opinion is that So Cal properties Value tend to be more about the long term appreciation versus monthly revenue stream.