The burnt house measures roughly 550 sqft, with 2 bedrooms and 1 bathroom.

I may gut a room here or there especially a bathroom or maybe a kitchen but never found a reason to gut a whole house for a rental rehab. 2.

They have no idea or understanding of compound interest, amortization, ROI, APR, or discount note purchases.  

like i said before if one is buying turnkey and then sell after 4-5 years the capex would not hit you, or just buy with substantial discount.

But this 5 bedroom 4 bathroom house with swimming pool and everything else was well worth the price differential. 

We categorize the problems into two groups:Deal Killers (or Deep Discounts): These include complete system failures, such as needing a new well or septic system, which significantly impact the bottom line.Deal Modifiers (or Small Repairs): These are minor repairs like hydrojetting the drain field, installing a new riser, repairing baffles, or replacing pumps/tanks, which can leverage a lower offer.Step 3: Making the Final OfferWe make our final offer only after a full system evaluation with remedies.

Moreover you can still find performing notes at a (small) discount which is nice. 

Added 5 bedrooms and 2 bathrooms.

My verdict: it could be a winning play given your equity and potential upside, but carefully weigh the pros and cons.Crunch the numbers: Factor in all expenses, potential vacancy rates, management costs, and ensure the cash flow covers your mortgage and leaves you with enough buffer.Consider alternative Bay Area locations: Maybe there are suburbs with less pressure on prices but still good rental potential and appreciation prospects.Don't rule out the single-family option: If the numbers work and you value the lifestyle, don't discount it entirely.

#2 House Hacking Room Rental Rates (West Ashley / Johns Island)I am looking to house hack and I would like to know what does the going rate for a 1 bedroom 1 bathroom usually go for?