There was some sort of State rental assistance, I think, for unwed pregnant mothers.

@Mark Albini Google some of the California projects I'm always seeing on the local news here, you'll see how elaborate they can be, The only ones I'm seeing get done with zoning changes are the ones that have some sort of Non-profit or charitable component.

Having that sort of liquid money will attract a lot of attention here:)  so maybe go slow but steady and meet in real life , do vetting etc of your PM .. you know what I mean

I am fairly close to wanting to execute and am interested in some sort of live in BRRRR strategy.

The pictures look nice, and a drive-by didn't trigger any immediate red flags, but I am budgeting for the worst just to be safe.   2) How would I go about making sure the title is clean?

Specifically, what are the worst-case scenarios I might face if I allow it?

That will be sorted out in the process of the lawsuit. 

My rule of thumb is, plan for the worst case scenario on every item. 

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

Consider all revenue and expenses and calculate best and worst case scenario.