True although the fires this year just adds to the reasons to leave California (excessive taxation and regulation, overbearing political correctness, downtowns littered with feces, etc.).

I was looking to put 80k cash into then refi afterwards and possibly getting 130k. 130k on mortgage would be close to $800 only leaving $200 in cash flow each month. 

However, a lot of concerns can be mitigated with looking at their past rental behavior in a lot of different settings.

I am not very concerned with cash flow and am looking more towards appreciation and equity. 

If the tenants don’t leave by the deadline, your next step would be to check your state’s landlord-tenant laws to understand the eviction process.

If the house has a septic system, especially if it's an older one, it's worth the investment to have a septic inspection done.This concern is particularly relevant for those planning to buy and hold the property rather than simply fix and sell it.

I understand if you want to sell 1 of the lots, but I'm not sure about your concern about paying off the debt so that you own it free and clear. 

If someone came to me looking for money and was trying to invest across multiple asset classes as different as the ones you are interested in, that would leave me extremely weary.

A post on recapture.People are concerned about recapture when they cost segregate their improvements and for good reason.Recapture is real, and those deferred taxes will need to be paid.But fear not!

I feel like starting this now and being able to live in it for a year while I work, and then being able to rent out my side of the unit after I leave to go back for my last year of college.