If you're confident you can add another apt through the two empties, factor it into the exit income projections but dont forget to add the rehab cost to your cost basis projection so can calculate your return on cost basis.

I understand that the majority of the risk in Section 8 is from tenants damaging the property, therefore depreciating the asset over time and leading to high maintenance costs.

If you invest in San Diego I suggest using a cap expense cost of $300/month for SFR.  

Protect any current investors at all costs.

Converting the sunroom into a bedroom would cost 4k-5k. 

The valuations on them appear to be completely arbitrary and in many instances the company seem randomly selectedWe had one recently from someone else who provided the opinion and the comps were 7 miles away and from another jurisdiction - whereas this property while in a more rural area had considerable sales that could have been used.If you use them to get an idea for property condition I find them to have some value but since they have no interior inspection reports, they are at best just a random guess of the value which could be off by 100%If you think residential BPOs are useless, you should familiarize yourself with BPOs on commercial property…..First, I’ve NEVER seen a BPO on commercial property that utilizes the income capitalization or cost approach.  

First, all first flips take 2-3x as long as you think and cost 2-3x as much as you think.

The average single-family home may cost $10,000 and that's a new install.

If you are planning on buying it with a smaller down payment, that will also increase your mortgage costs as you are borrowing more and also need mortgage insurance.The price of the home (from the seller's perspective) is based on market value and condition, not on whether or not it matches the 1% rule.   

One of my properties cost me a little more, but the other two were less than what I was paying with foremost insurance.