You are going to have to have a pre-approval letter to submit an offer, and you want to narrow your search for what you can afford.This is my favorite way to get started in investing!  

They are very different.To "assume" a loan means that you are getting the current lender's approval to take over the borrower's position.

@Daniel Caraway You need to find out what the legal use is shown at the city's Building Department.

If you ask for a change be prepared to reimburse the bank the legal costs to research your question.  

I would also look for a way to LEGALLY get them out of the rental as soon as possible and get someone qualified, mature, and stable in there.

@Matthew Olszak What is the date on which winter begins legally?

As a result, I understand the financial and legal aspects of real estate but cannot say I know the first thing about actually being a real estate investor.

*I'm in the process of getting my loan pre-approval, and I will have a better idea of what I can afford once that is complete.Would you recommend forgoing the FHA loan and purchasing an affordable property out of California, or try to search for an affordable home in California using FHA loan?

-set up a good system with some controls in place to ensure your invoices approved/checks cut and paid is being monitored.

@Bryan Cork the lease will stay in affect regardless of who the owner and contInue to be a legal contract.