I think the key take away here is that the Cap Rate is way to low for the level of risk even though the tenant is locked into a LT lease. 

So I just became involved with investment lending on fix & flip properties.

No one knows what will be the final legislation but any plan of a non-owner occupied STR would be risky.Even if you use the house hacking method I suggested you look into, because you do not know if you would be staying in San Diego long term, the STR route is very risky and therefore I would not recommend it but you can look into the proposed legislation and decide if it is a risk you want to take on. 

Majority of the deals are buy & hold with some flipping involved.

Great idea to get involved with RE investing early and reap the benefits of compounding appreciation, as well as cash flow.I'm a Retired USAF Officer & my Son is Retired Marine (Class of 91). 28 Years experience in Real Estate Sales & Management.

I am not looking to get involved with an attorney who will tell me anything in light of picking up the case knowing he will be paid no matter win or lose.

People seem to be scared of it but because I've group wn up there I think I'm willing to take the risk.

My understanding is that if you acquire the deed to a property through a tax sale that you are required to inform any and all heirs/owners of the property in writing (and possibly receive some sort of receipt of such), and if you miss one heir or owner then they can come back years later and claim ownership of the property.Can someone shed some light on this type of transaction, specifically what are the risks involved in such a transaction? 

Life won't end if something goes astray, and there's plenty of education out there to help you mitigate risks as you get going.

As long as you have a fixed loan/mortgage, and the rental income isn't at a high risk for dropping dramatically, you are covered regardless of what the market does.