Basically what I would like to know is where do you start when you live in very expensive California and don't have capital coming out the ying yang.  

I received word today that my bank was willing to do an 80% LTV cash out for 25 yrs, w/ 30 year amortization at 4.75%.So this deal closed on 10/1 and demo started on 10/5.  

Dealing with plumbing in slabs is a mess, just make sure your budget accounts for the extra work involved for demo and then repouring the concrete. 

You'd have to completely demo anything that burned or had bad smoke damage and build it again from scratch.

First, tear downs gets a bit out of the average investor's arena since there are so many contingencies of demo, debris removal and remediation of lead and asbestos of old homes.

I did all the demo, tile work (never doing again), install cabinets and hardware, (they were new box cabinets from a wholesale cabinet company), installed finish plumbing, installed appliances, pressure washing of fence, drives, basement walls, framing of washer/dryer walls and a lot of minor things along the way.

And here is a rough breakdown of the repairs (I noted the items where we supplied the labor):Demo: $500Attic finishing (rough carpentry, insulation, drywall, trim): $4,500Plumbing (move bath vanity; new fixtures in bath & kitchen): $1,050Electric (move range outlet; remove old fuses; replace all switches, outlets & fixtures): $750Wallpaper removal & paint throughout (material cost only - our labor): $600Kitchen cabinetry & countertops (replaced w/ used cabs from Craigslist & reclaimed soapstone counters; material cost only - our labor): $850Appliances (new refrigerator; used range): $500Interior doors & hardware: $500Flooring (vinyl floors in attic & kitchen; material cost only - our labor): $1,500Windows: $1,600Asbestos duct removal: $500Misc. carpentry (trim repair; closet shelving, etc; material cost only - our labor): $300Exterior work (gravel; landscaping; paint; material cost only - our labor): $350Utilities: $200Misc: $500TOTAL: $14,200

Eventually I think you could demo them and rebuild with better looking, more efficient space.

The house was completely gutted: no sinks, no tub, no plumbing, no dry wall, no flooring, no ceiling, no light fixtures, no HVAC whatsoever, just studs, siding, some windows, and a roof.Not only do the HAZMAT guys charge a lot, you have to pay for special disposal of these demo materials, not cheap.

If things appear decent enough my idea is for my husband and I to purchase and put in major sweat equity to demo and remodel.