God forbid something happens and I either can't get rid of a tenant or can't find one, I would barely even be able to afford the mortgage

Because it has to, it's operating on a razor slim margin and can't afford the issues. 

We have talked about things such as rent by the room and acknowledge that the operating model will likely be very different while living in the property vs. when we move out.I think the point you made about assumable loans is very helpful to get into a property you might not otherwise be able to afford.

Only other advice I have is to try to find a quad, not a duplex, in the nicest neighborhoods you can afford.

In addition, some of those fire victims can afford to pay top of market price for homes. 

About me, most of my assets are RE but in another market so I would be diversifying in that market.Potential for appreciation is very uncertain: prices have risen a lot locally lately and are as high as they have ever been, and it’s unlikely higher prices would be affordable by locals.

Part of the investment thesis was getting it for a bargain, then building an ADU complex on it as affordably as possible, getting it to cash flow, and realizing value on both the rental income but also property appreciation given the work going into it.If the property will really only be worth ~$1.70M once we are finished, I will likely just stop the project now and exit the house as soon as possible.If you do not get dollar for dollar for projects such as this, how would house flipping ever work?

Udemy and Coursera have affordable options, and they could help you feel more confident when pitching yourself.It sounds like you’re in a great position to get started.

People start moving in with their TOH homes (back in the day when everyone could afford one) and the park starts to fill up. 

When you build enough capital/assets/net worth to afford a reasonable monthly cushion you can see if the lifestyle of a full time investor is something you’d want to pursue.