I know the home really well and it's in a nice neighborhood.  

the seller, the buyer, the bank, the neighborhood, and the agent or investor (if one is involved and get compensated.

However, when I think New Jersey might be a better option, this being said does anyone have neighborhoods that are up and coming?  

I choose the tenant based on credit and rental history without any set ratios as the quality of applications varies from one neighborhood to the next.

@Ali Boone I live in mid-city/hancock park.

Yes the San Diego market can be a tough one to get started in, if you decide to invest out of state choose cities in safe and economically diversified areas with above-average income and population growth.

@Mark Moore I like the Trulia guide for cities.

Home up for auction in a great neighborhood, suggestions on how to obtain it with a hard money lender or cash buyers?

Especially if you have mature trees on the property, you'd want to inspect lines that were that age if you were keeping the property.If sewer line problems were a common occurrence in the neighborhood and having had them checked could be used as a selling feature, great.In other words, no, don't do it.

Newbie investor here from iowa city area.