Turnkey might be a good starting point since it requires less hands-on work, though you'll typically pay market prices.

I would not accept less than GROSS monthly income 3x rent because realistically they are not likely to keep up with paying rent.

It may even take a 3-5 years to get cash flow positive but if during that time it is cheaper to own monthly, than pay rent, you are way ahead.  

I’ve heard that this neighborhood doesn’t really have any problems from a social worker but outside areas aren’t good. 3/4 units are currently rented at $900 each, renters pay utilities.

The current owner is letting me take over the property as a tenant as long as I pay the water bill and the mortgage payment on it and whenever I decide I can purchase property for the balance of the mortgage  they are in no hurry for me to purchase the home as long as the mortgage is paid. 

We are General Contractors and part of why my cost for the conversion is so low is because we have the resources to pay at cost and the property is located in a county with lower labor costs than other parts of California.

Now, you need to figure out how to find deals and pay for them.

Are you going to pay them more?

You pay to open it up, but you won't pay monthly unless you take money out. 

@Jamie Parker pay for some one-on-one time with @Jonathan Greene - it'll be worth it!