Also, zero leverage (ie: no loan)$ 52,800 * .50 = $ 26,400 = NOICAP = $ 26,400 / $600,000 purchase priceCAP = 4.4%  (NOT a good return considering you can yield higher returns elsewhere in less risky investments) 

AS Don and Chris point out though in my mind it has to be a smokin deal to take the BK risk. I

It's possible, but seems worth the risk. I

Main thing is to find out where his perceived risk is and what HE thinks will reduce his risk. 

I've played around with the idea of giving guests a YouTubeTV login but that seems risky.

Very risky. 

And whoever makes the payments on the mortgage could stop, resulting in a notice of default, leading to foreclosure…making this a risky situation for the wife to be in.  

Keeping your current house as a rental (Option 2) is attractive for appreciation, but could be risky given the high expenses in SoCal.

How do I educate and reach the young(ish) professionals on the value proposition of these kind of "starter homes" to build equity, learn property management and save a ton of money relative to single unit purchases? 

Is it risky?