However, we do have to expend the time we have here on earth somehow (and purposely, at least), so we might as well find what gives us joy OR find out by trial and error OR speaking to someone who can help draw it out from us. 

It may be a lot easier to keep it as one unit with individual rooms, but it's hard to say what planning and zoning will allow or what you're working with. talk to them before expending any more energy on this.

Seems like quite a bit of cash will be expended - 80k+?

If you can afford a comfortable life in California, when you move to a more affordable area you will have more expendable income to put towards building your empire.

You said:>If the costs of ownership and use exceeds the total returnsIn any case where this is true, it means renting is cheaper than buying.In any case where renting is cheaper than buying, buying is a bad deal whether you're a homeowner or a landlord.In fact, the homeowner's ROI is actually higher because he doesn't have to hire a property management firm or expend any of the effort required to deal with a tenant.Therefore, on any given property, the homeowner's ROI will always be higher than the landlords.So not only is my primary residence an asset, it's a more of an asset for me than it would be for a landlord, by your definition.

Hi Twannisha, In my "experiance" I have never kept inherited tenants , and always increase the rent once I replace the tenant, but I make sure I expend money fixing the apartment to make sure I can charge market value rent, or above market value rents. 

Not sure why anyone would want to steal your flip budget, or why you'd want to expend a lot of energy to protect it.Now, as far as other, actually confidential documents, like leases, and application forms with personally identifiable information - make sure THAT is secure.

You can also seek additional amounts for repairs and interest on the funds expended.

The main area being revamped is hard to find unless you already know where you're going and it's really out of the way for most of the people with significant expendable income.  

That adventure almost brought our union to the brink, but that a whole different story.It took as almost a year to finish the project expending the house by 800 sq/ft adding bathroom to the master bed room, a den, a foyer and converting the garage into a loft with a full bathroom and a kitchen.Renting was fast. $500 a month (That very unit is pulling $1,300 this days)but the mortgage also ballooned.My late wife and I always wanted to expend our real estate venture, but we never acted on it because we never looked beyond Los Angeles area which we couldn't afford and that was our mistake.In 1998 We decided to expend our rental even more.