The current owner lives there and had someone paying to a trailer in the back yard all the way in the back. 

Another idea for housing economy if you have an office is to rig your office to live in but not sleep in. 

You have the ability to sell while limiting your capital gains tax because you lived in 2 of the last 5 years. 

(For context, it's a 2700 sf 4 bd 3 bath house in an upscale Northern California suburb.)Kitchen A: Traditional, features a 48 in fridge, 36 in cooktop, window sink (no view), pantry.Kitchen B: Designer, features a 60 in fridge, 48 in range, large kitchen window (no view), sink facing living/dining room; unfortunately no pantryKitchen C: A Little Bit of Both, features a 48 in fridge, 48 in range, sink facing living/dining room, pantry, unfortunately there's no window.Total countertop space is roughly the same (22 ft)  in all three layouts.

I do pretty decent for my age, and I live at home still, so I've been saving up a lot of money.

I'd level up with a BRRRR, live-in flip, or house-hack before jumping into a challenging renovation.

Hopefully, not an expensive tenant or Fair Housing lawsuit.100% of what @Travis Biziorek states is true, but he left out a key fact - he lived in the Detroit area when he started investing here, so was able to self-manage and meet everyone he had to hire face-to-face.

Nick,As you already know since you mentioned it living in California means look to other states for your prime investments.

If you live in your short-term rental (STR) property in a future year after claiming depreciation, depreciation recapture does not occur immediately.

I live in the greater Maryland  area.