I have a pretty low turnover on my rentals in California.

Could do it, but would really rather not.Scenario 2Rent current home - Buy new homePurchase price of 400k20k downpayment as opposed to 100k as used above in scenario 1at 3.375% (would this change with such a low downpayment?)

I don't currently own a home but I was considering buying by year-end since rates are still low.

Replacing all light fixtures, faucets, doors, door knobs, ceiling fans, every inch of wall was repainted, all moulding from brown to white, new laminate flooring through the whole first floor and vinyl in the bathrooms, repainted the deck, and really landscaped outside, as well as a brand new porch.

If she wasn't family, would your vetting process even green light her?

You can get into the business with low funds but it may be better to bird dog or try to assist an experienced investor to learn the business. 

I set up a minimum price so I have control over how low they can price the room. 

That way you know if its low, high, or average.Are you making purchase with all cash or HML/PML money?

The Quick Recipe We Used in Our Kitchen-Light Quartz Countertops-Porcelain Mosaic Backsplash (in a complementary color)-With Dark Wood Shaker Style Cabinets (for contrast)-A Fabulous Shiny Faucet (for pop)-Color Pendants (for more Pop)-Stainless Steel Appliances-Vinyl Floors (yes, vinyl!)

Some landlords tried including electric, gas, cable, internet with the rent to the students... students loved it, landlords got clobbered, because students were now leaving all the lights on, their windows open in the winter with the heat on, etc and the electric/gas bills skyrocketed which now the landlord was paying.