It looks like only 1/3 of Sacramento county's residents live within the city limits and Yolo, Placer, and El Dorado are all part of the broader set of options for living and investing in the area.I'd like to think it doesn't have much chance of success - some of the groups getting together to oppose it are quite powerful.

Unless the neighborhood where your property is located has experienced a dramatic shift toward higher income residents, there is no cosmetic upgrade that will give you a return on investment.

Also, when you ran the numbers did you consider all the tax deductions if it's going to be your primary residence?

If it isn’t I’d look at renting or buying a primary residence first, then investing.

I've used it for legal questions in the past and just recently used it substantially with the purchase of my new home (primary residence).

I’m looking into using this as our primary residence as a newly weds (will get married in May) and will be our starter home.

However it used to be our primary residence and we became accidental landlords when we moved. 

It is very homey and welcoming to new residents and has a mix of young families and, on the flip side, a lot of people who have been in the neighborhood 20+ years. 

Normally a personal residence isn't an investment, especially the way an average person buys a home.

OTOH, if she bought it in 2006 at the height of the previous bubble, you may not be too bad off.1031 exchanges are for investments only, not your residence.