I have circled the house in red.Personally, from the numbers so far I don't think there is much profit to be made from this house since most of the comps are much lower.

Start by saving, you technically can invest with no money but it will often be riskier and lower quality properties, it is usually better to just save, especially if you want to purchase rental properties as Rich Dad, Poor Dad implies is the right strategy.

Hey fellow pocketers, so I’m officially pre-approved by two lenders which I will most likely go with USAA since not only is the rate cheaper but it lowers my car insurance but that’s another story.

Their “ROI” figures are low at 5-7% even for the lesser cities, and on closer inspection these ROI numbers do not represent a reasonable cap rate, which would be even lower.

State taxes should have a minimal effect on evaluation if you live in CA (excluding property tax) because my understanding of how the income would be taxed is (state income was generated in taxes first if it is a higher rate than CA no further tax, if it is lower rate CA takes what you paid the other state into account and taxes the rest of the way up to their normal rate)  Hopefully that made a bit of sense it is difficult to explain in text format.

You could pay a lower price at a higher interest rate to satisfy her goals.Work the numbers.

Save until you can invest in a good area where you can get decent tenants, I didn't say good tenants but decent to lower the barrier of entry. 

Saying that i'm comfortable and realistic with this rehab estimate and hope to bring in the construction at a lower cost. 

If so, how do I go about negotiating a lower purchase price or seller's assist to get some additional funds to fix the mold.

Lower unit is where the owner lives or lived.