One of the things I've done is move out of a $150K condo with tennis courts, a pool, and a fat HOA fee to a duplex I bought for $45K in a not-so-nice neighborhood.

You don't want to end up working for less than minimum wage by the time this project is completed.I've been in business many years and every once in a while my employees sell a big fat job to a homeowner for $50,000 or $60,000 just for plumbing repairs, electrical work and sometimes a kitchen or bathroom remodel.

But they're cool and groovy so the fat cats gotta have them. 

If they send a "home run" deal out to a hundred investors or so then more than likely the emotional bidding will strip out all the fat off the bone with the only folks making money are the lender and contractors.  

Keep looking, but only swing at a fat pitch.

@Jon Schwartz1) To begin with 3 million FMV in California captures innumerable small business owners standing entirely on its own, but if that weren't bad enough, the valuation standard is actually aggregated across all properties owned so it's not in fact in excess of 3 million per property making it much worse still.2) Commercial properties have a very suspiciously expansive scope in the initiative (the devil is in the details, as is typical, and here as well) thus capturing both mom and pop businesses and in many cases even agriculture.3) Unsurprisingly those proffering the provision have acknowledged it is but a first step, once they get their foot in the door with passage of the initiative they will shoot for full repeal of Prop 13 targeting all real estate owners.4) But you make a really great point, sell it as tax on fat cats (while in reality it's scope will hit many many small businesses) makes it palatable to a largely uninformed electorate and further softens them up for delivery of the really big hammer when they shoot for full repeal of Prop 13.

So this is a longer topic but let me give my quick thoughts on 'fat' and overhead in a property management setup:You absolutely need property managers and maintenance.  

I am headed for fat FI, so I can do everything I want.

By limiting middle fat.

By limiting middle fat.