Condos are usually a lower price entry point, so they suit a lot of newer investors, but certainly not for everyone! 

DSCR loans cost a lot more than conventional loans. 

We've done well just north of Lackland, but primarily look in a few neighborhoods near the airport and a couple spots close to downtown.

Same for 2-years of job/income stability.Tenant Default: 10-20% probability of eviction or early lease termination.Section 8: Class C rents usually meet program requirements, proper screening still recommended.Vacancies: 10-20%, depending on market conditions and tenant screening.Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.Class D Properties:Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months.

Ask the building Dept what they see as issues or problems as they will be the ones to make this a go or no-go.Biggest issues are usually getting to the drain line.

In San Diego the typical SFH investor purchase rent ratio is closer to 0.5% than what you depict and has not gotten worse at the same rate as you indicate for LA (it was not much better than 0.5% 15 years ago), but has gotten worse.  

There are so many variables that putting an average into a spreadsheet isn't going to do much to get you closer to taking action.

Usually, a default on the 1st is a violation of a covenant of the2nd so a default of the 2nd is triggered even if the borrower is current on the 2nd lien.  

That being said, I seem to be doing better than most.I had a couple large ticket items to fix last year that really ate into my profits, but I still ended up positive and with a great retreat from the city that pays for itself.

The local laws are usually very clear on how a former resident can obtain possession of their property and trespassing unsupervised is usually not legal.