The home was a 3 bed 2 bath with a hole in the roof, missing flooring, and general neglect.

We had somebody who decided to open a bed-and-breakfast nearby because it was a permitted zoning.

Also how many beds per apartment?

I got another 2 leads in:And by the time I go for dinner, I will have an other 3 leads in.And by the time I head for bed, I will have an other few leads in.On autopilot.

A cheap motel room with 2 beds is $400/week. 

I am guessing you rent by room which would mean for a 2 bed 1 bath for example you are making alot more on renting to students than to working individuals, does the extra income off set the increase in expenses when renting to students?

Scenario: 2 bed 1 ba house in high appreciating area in southern ca (west of the 5 for anyone who lives in San Diego) which is high priced now but being coastal and in an up and coming area is set to roll. 1 granny suite in the back with full kitchen and bath + Separate barn unit (not zoned for a dwelling unit but is carpeted). 

You could also "house hack", depending on your living situation, location/market, kids, spouse, whatever.Anyway, here's the basics of my first TK investment, fully rehabbed:3 bed, 2 bath "bread and butter" house just North of KC.

You can find full renos with the same bed/bath count anywhere from $85,000 to well over $160,000

Most people who own rentals out here have them run as a bed and breakfast.