The reason being is that a lot of land simply wasn't usable for farming / ranching so during the westward expansion of the united states this land went unclaimed by settlers because nobody wanted it. 

It won't be a complete tear down and start new, but will cost around $400-$500 k in repairs and expansion, while the home will cost around $1.1M to buy. 

Flaking paint is a big no-no, specifically with an FHA appraisal.Painting vinyl requires a specific type of paint with specific ingredients meant to adhere to the vinyl and move with the expansion and contraction.  

There is room for expansion and significant cost cutting based on the expenses the broker sent me. 

When investing in real estate, you should do well in times of economic expansion/prosperity and moderate to high inflation.

I also thought SeaTac had a reputation as being "blue collarish" but it reportedly is right in the middle of Seattle and Tacoma offering great path to progress and easy commute to Seattle (via rapid transit)....Alaska Air's HQ is right next to property and there are massive expansion plans, which looks to be a plus...On the other hand, I cannot help wondereing how many potential tenants want to  next to an airline construction activity and a casino.

Each city gives you different headaches, forcing you to shed money like crazy.Plan about $200k for site built, expect rent of around $2500/month, plus appreciation of about $400k, just estimate.For Hayward, doing a main house expansion (900 to 2000 sf) and an ADU (1000 sf) at the same time.

Also, if we buy new homes for the expansion and then sell them to consumers will this disqualify us?  

The reason that I (and a lot of others) feel comfortable with increased competition within the tenant base is the expansion trajectory of the college.

For Marin the lot is very large 10,000 square ft so expansion is an option.