In addition due to prop 13, the tax base is a fraction of if it sold today.   

Here’s an example of what I've used if they don't qualify based on what's on application. 

So bye-bye all the Brrr's and Multi's and what not, we need SIMPLE, right, a good simple SOLID base-hit, right. 

Are you not necessarily denying him based on screening criteria - Some landlords make it a requirement to view the property prior to letting the applicant apply.

Basically, the further you get away from the city the more potential for cashflow, but you're also dealing with a different tenant base that may be tougher to manage.

@Marc Robinson if it is on a lagoon I would pass on it based on that alone.

@Zach Howard there is no agreed upon Classification in the 1-4 unit market.We've done our best to logically create a system for our market, mostly based upon relative sale prices, but also using crime rates, rents, occupant income and a few other variables. 

Based on a quick answer from Perplexity it seems like there would be no issue with you buying the home and collecting passive income, but you may not be allowed to manage it yourself since that is considered active work.

It would be based on the scope of work of the renovation that you're doing comparing for values in its as is condition and values after rehab 

@Gary Abrams A cloud based solution would work really well in your scenario of having other family logging in and helping with management.