However, if your father inherits and later transfers the home, it should qualify for a step-up in basis to fair market value, reducing future tax liability.If the goal is to tap into equity, having the trust take out a HELOC may be a better option, avoiding California Prop 19 reassessment, which could raise property taxes significantly.

Through loopholes there are many home owners that are illegal immigrants, if they get deported , what will happen to their homes?

Finding deals outside of California can definitely open up new opportunities, especially given the cost of living and market dynamics in the state.When looking for properties in other states, consider focusing on areas with strong rental demand, economic growth, and population increase.

If looking to change the market value of property, well there you go. 

Do you know the markets you threw out really well? 

Tremont is an excellent area with really high market rents and super high demand.  5000+ sq ft. is huge too, congratulations!

Is it way below market?

I'd say they are both cash flow market. 

I wish you the best on your live in flip this year and hope to hear of your successes/lessons learned from it!

The price we thought was very reasonable in this current market based off the other properties we have seen prior to that with similar layouts.