The first factor to consider is Proposition 19, which will trigger a reassessment of property taxes if the home is transferred to either of your father-in-law’s daughters.

Investing in a single-family home in LA and expecting a good cash-on-cash return will be very difficult. 

@Rick Zink  "hard money/Private money" typically takes cash as well.

More people typically means more wear and tear. 

Two identical homes located next to each other would come up with the same value, even though House #1 was just renovated to a very high standard and House #2 hadn't ever been renovated since it was built in 1949.I always tried for an identical (or nearly so) beds, baths, sq ft of living area, garage and acres. 

If rates dropped 1-2% on a $600,000 home, it would cost a buyer $3,400 a month.

Realtors typically pre-screen rental clients to make sure their time is not going to be wasted.

Building my buyers list for $10k "condemned/burn out" VALUE ADD Homes in Southwestern Michigan (5 minutes to Lake Michigan/90 minutes to Chicago).

I was under the impression that FHA is first time home buyers.

If you hire a PM, they typically charge 15~25% of the gross.