This past year, I purchased my first two rental properties in San Antonio (SFR) and Orange Beach, Alabama (STR).

The leasing fees are the low hanging fruit that makes that business even worth pursuing.

But as an experienced agent and investor (I own several properties across Los Angeles, Orange, Riverside and Kern Counties), I can tell you that no state beats California for appreciation and rental prices.

For example, a house I owned in Orange County reached a top value of $700,000 in 2007, and I owed around $200,000 on it and it rented for $2,000.00 a month. 

Especially when there are tons of incentives for grabbing that "low hanging fruit," like there is in your particular situation.IMO your 'low hanging fruit' would be utilizing the new-ish Fannie Mae rule allowing only 3.5%-5% down for owner occupant financing (house hacking) on ALL small multi properties (anything under 4 units, so duplex, triplex or 4-plex).

Scenario A :  The project (in Orange County, CA) I am undertaking is a grand-fathered 3-unit property where I will renovate these units and add two ADUs to the lot.

Follow the Orange Line, get off at each stop, and get a feel for the areas.

Hey @Michael Ellis - I have experience with neither but can tell you that this form is probably not going to yield the most fruitful result. 

This is exactly how I got started in real estate just up the street (the I-5) in Orange County.   

We manage SFRs, condos, townhomes, and apartments buildings throughout Orange County.