I am assuming you have not closed on this yet.

I assumed this would be the case because the rest of what California has to offer kind of sucks.

If you're willing to have roommates, your options open much more broadly, and you can potentially assume a loan with a low interest rate. 

One would think that a bidder would pay $45,000 in my example (since they are assuming the first mortgage), but they are actually bidding $225,000.

Let's use an example of replacing a leaking kitchen faucet (assuming it can't be repaired):You can easily find out how much the materials are by going to the Home Depot website and picking one out.For labor we Googled, "How long does it take to replace a kitchen faucet" and this is the answer we got:AI Overview: Replacing a kitchen faucet can take 30 minutes to several hours, depending on the faucet's complexity and whether you're doing it yourself.

I'm assuming the electric fireplace will be in the bedroom?

The property taxes will be on his Schedule A during the time the property was his primary residence, assuming he itemizes.

I’m assuming it’s their renters refund?

And do you have a certain price range in mind and I assume you're good with up to a moderate level of rehab?

Assuming you are both working and the rentals are long-term, rental losses up to $25,000 can offset W-2 income if your MAGI is under $150,000, with excess losses carried forward.This post does not create a CPA-Client relationship.