Yes, you can spend money on extensive renovations if you don't want to realize that income, or some version of that, and it may be advantageous to some very wealthy people with multiple healthy income streams and properties, but you should be extremely suspicious of that.

For a healthy BRRRR strategy, you are looking at 20-30% equity to start with.Does not look like a great BRRRR candidate.

The city does not have much growth (La Verne, CA) and the real estate market seems pretty healthy for selling, so I don't think there will be much appreciation.

Also, their grocery bill is astronomical and it should be cut drastically while still eating healthy food. 

It is healthy to be afraid of debt of the consumer variety, but in investing, done correctly, leverage is your friend. 

I live and will invest (at least to start) in Kansas City and the surrounding areas.Let me tell you a little more about myself:I enjoy traveling, watching sports, reading, going on early morning runs, eating healthy and (most importantly) spending time with my family and friends.I'm a big math nerd.

Or are we passing up perfectly healthy deals? 

There is a good opportunity in my neighborhood on a property that is in the middle of a remodel but the owner has to sell due to poor health. I

If you don't save up a healthy amount not only will purchasing a house drain you but there will always be unavoidable costs you'll incur.

That has to be balanced by maintaining healthy cash reserves, having enough equity to withstand market fluctuations and rental property issues, and your ability and willingness to grow.