I wouldn't be comfortable buying a cheap property and not actually rehabbing it. 

Unit 3 - mid-term rental (this would be best for the most private unit as most mid-term renters are more concerned with privacy and creature comforts than amenities)4.

The key is understanding your comfort level with managing multiple units right out of the gate.. 

______Make it make sense.As someone who grew up in California, this tells me two things:1) you don’t know what you are talking about and are very comfortable with your ignorance;2) you won’t even take two minutes to find facts.If the hydrant system relies on electric pumps and in some areas there’s no power, then there is no water.

This would allow her to feel more comfortable with the increase, and to still meet the 3x rent requirement. 

Get out of your comfort zone.

I don't think it is a bad idea to find work in real estate somehow as it will allow you to be comfortable with being around it in general, such as a property management company.

The owners became friends with the tenants and do not feel comfortable raising rents on their friends. 

Get out of your comfort zone.

If you’re working with VA-savvy lenders who are comfortable with your plan and don’t impose stricter rules, you might be able to rinse and repeat as you described.