Also, the units are outdated: old kitchens, carpet, etc.

I find in dealing with commercial brokers, that even if info is on costar that I often have to reach out and confirm it anyway because it can be outdated or revised.

So his another idea I was thinking about and would love some feedback.What about getting a commercial loan for a property that’s not falling over but just outdated and need some serious TLC and still prices under market.

I'm surprised SF doesn't have something similar where you enter the move in and move out dates and the amount of the deposit. 

You'll thank me later.Replace outdated light fixturesTake care of all obvious repair or maintenance issues.Upgrade electrical panel if necessary--I don't mess around with electricity.Service the HVAC systemIf a house has only central heat but not AC, I install a new system.I have a plumber go through the house thoroughly to make sure everything is in good condition; if it isn't, he fixes it.There's more, I'm sure, but I'm blanking out.  

You'll be able to maintain contact with members, which will be very helpful, and might well identify your "trusted local associate" through that channel.Books on this subject tend to be very simplistic (the subject matter is fairly simplistic), many are outdated especially pertaining to the financing landscape.

Your mechanicals and capital expenditures are a lot more important and more expensive to fix than a pretty kitchen. its better to live in outdated kitchen and have a well kept home with updated mechanicals/roof/hvac than one that looks pretty but will start to crumble5.

Average rent in this area might be $1100-$1300/month if you have a nice property but this one is outdated so you would probably get $950/month.

Also understand that usually motivated sellers are behind on taxes, homes are distressed and or out dated so you may not get them to make repairs or anything else due to the reason they need to sell so bad. 

Oftentimes inherited tenants have below market rents and like you said they may come with baggage & you don't know if they are a good tenant.This past summer I bought a house hack with inherited tenants and it was a struggle to get the tenants to commit to move out dates & it took longer for them to leave than I had hoped.