Since you don't make a profit until you recover your cost, it will take you a century to make a profit on this property.I think you are mistaking appreciation for equity.In either case, based on the limited money info given here, I'd go with curtain #3.

If you want long term superior cash flow, long term outstanding appreciation, outstanding ROI (top 3 cities in Case Shiller buy and hold return for this century are each Coastal CA cities and only one coastal CA city is not rated a 10/10 for appreciation this century by NeighborhoodScout (and the one that is not is a 9/10).Historically there is little correlation between initial cash flow and long term cash flow. 

I knew they had a falling out, but I thought that was kind of funny.RK is one of the more influential financial authors of LAST century. 

While that adds to the character of the home, it also creates a maintenance headache with peeling layers of paint with the potential of containing lead.Not sure if this answers your question, but it explains part of why I won't buy century old houses.

Case Shiller’s top 3 cities for return this century (at least last I looked which is probably over a year ago now) are each CA cities (San Fran, LA, San Diego).Phoenix has experienced significant growth.  

Mid-century brick with two garages.What made you interested in investing in this type of deal?

Some of us have been around this game for more that a quarter of a century and have seen a thing or two.

Joshua, I’ve used phil kennedy at century 21 barefoot rentals for the purchase of my golf course townhouse and two oceanfront homes.  

The concepts of math are actually very simple, but math is taught wrong in school...and it has been for years (decades,...maybe centuries). 

My source is case shiller that has top 3 cities in the nation for buy and hold this century as being coastal Ca cities and neighborhood scout that has virtually every large Ca coastal city as a 10/10 on appreciation for this century.