Is it crazy to think that 40k discount off of the appraised value is fair, given that the improved price is could be as much as $600k for a house this size in Los Angeles or have I let the flipping shows cloud my vision of reality?

Its true when you have a clear vision of your goals your mind and other things start openning up.

What i'm getting at is to develop your vision so you know where your going, without that no one can tell you what to do next.

Can you work together with the same vision?

My vision is to initially take a buy, rehab, and hold strategy investing in small multifamily like duplexes/tri/quad and maybe mix in a SFR.  

Now reality hits me as I'm overwhelmed by the thought that I'm suppose to learn how to be a "rehab estimator" as I have no skills or knowledge in pricing projects, let alone the quality of materials or vision.

If one of those moves better serves your long term vision, I would say go with that one.

This property went from zero to hero with your vision, elbow grease, determination, grit  and I'm sure lots of hope and patience.

I've come up with this vision of creating a small investment REIT, where different people could invest a very small portion of money, starting around $100, for a small share of a rental properties (mostly multi-families) and then get their share of the profits.

And replace the government as the way to help the Social Cause.My vision is to provide education and opportunity.