I bet you my panties you will see several IC sites on the top.. always.Coincidence?

I bet there is going to be plenty of turnover which means several hundred $$ to make repairs every time someone moves out.$600+ for a one bed one bath with 2 other units right next to you is WAY over priced. 

Watch for knob & tube wiring (uninsurable), cedar post lally columns in the basement and slanted floors that result from the cedar posts shrinking over the decades.If they have been replaced, remember that the adjustable (temporary) steel columns are not up to code. 

With that said, the HELOC is definitely the best bet because you only pay interest on the money you use. 

Or, if Santa Barbara does not permit any STRs at all, they might just be betting they won't get caught (not a wise course of action, IMO).Definitely do the research, because if there's a way to do it legally, I'm sure you could make a killing from an apartment like that.  

Just have your client copy the schedule E expense categories into the first column and fill them in each month with a row on the top for rent collected.

Yes yes this is my own personal definition here, just go with it.If you are on BiggerPockets, and you have a business as an investor, and you want to become wealthy doing this...And I bet we all are...You don't do the work yourself.

To add to Steven here on #4, don't bet on appreciation in Worcester. 

Your best bet is to try and locate the owner and buy directly from them, the best scenario for you would be to get the property for the amount of the back taxes and maybe a small amount to the owner.

Most of the big guys do have seasoning requirements so your best bet is probably local!