The bigger concern I would have is low pressure due to blocked pipes, especially to the bathrooms.

We’ve been looking at cities like Fullerton, Cypress, Anaheim, Orange, and Tustin, but we’re staying away from LA County and Santa Ana due to rental restrictions.A little about us:I’m 30, my wife is 28, and neither of us has owned property before.

If we scale at the right pace - doing our best due diligence - those issues will only be minor even if they seem extreme. 

It's a more affordable market and lower property taxes, so you may actually have a chance to cash flow.

An annual business tax as a hotel of $50 and collection and remittance of transient occupancy tax of 12% from renters is required of all short-term vacation rental operators.

The 1 mile income radius could be misleading in either way to the positive or negative if the property is on the right or wrong "side of the tracks" so to speak.The 80% occupancy, if it's solely due to the mismanagement of the current owner could be an opportunity. 

If the signs point to selling, consult your CPA about the tax implications.

(It doesn’t pay its own taxes.

I've had people tell me not to worry about it and to just do it, and I've had other people say the bank will call the loan due.

I recently purchased a 2 unit property as owner occupied with one unit already rented out. 3 months after closing, I was laid off due to a restructure at my company, so I decided to rent out the other unit my girlfriend and I planned to live in.