Also, I picked a liberal arts school so I could take any classes I desired and was able to expose my mind to lots of interesting disciplines.

We are also surrounded by an urban growth boundry which also drives up land prices.ADU's (additonal dwelling unit) are a result of that desire to promote density.

I want it to be a safe and reasonably desirable place to live.

It is highly desirable to blend uses into the area thereby protecting the residential character of the area; but not create architectural or traffic conflicts nor permit the commercial development to expand into a regional center of such scope and variety as to attract significant volumes of traffic from outside the neighborhood.Even though I can think of innovative ways to increase the rent and current job market in Bakersfield with plenty of jobs in Oil and gas and agriculture section make this increased rent very doable, but I see that as wishful thinking and when making an offer, I want to be as realistic as possible and I will not hope for any income above fair market value.I have a feeling that most challenging part in real estate is finding the right property at the right price.

If they do come back at a price to high because they desire no risk and want to get the money upfront and to end it, be sure to stay firm and say you know I would like to pay you more but my calculator says if something unforseen happens I could be doing all this and and putting out all this money and all this effort and end up making nothing and that doesn't put dinner on the table, and then you shut up.

Obviously I'm not familiar with your particular neighborhood, nor do I know if enclosed garages are common there or not, but in most areas an enclosed garage will actually increase the value of the subject property (but have little to no direct effect on the rest of the neighborhood).Unless a neighbor's new garage would somehow impact your property (i.e. block an existing desirable view, encroach upon your property in some way, etc), I don't see a need to be overly concerned with it.

Napoleon Hill says all you need is a burning desire so you're half way there!

It is in a desirable location, and the neighboring houses sell in the low $300's.

These 2 parties have to work in conjunction to aid you in reaching your desired result on your claim. 

If I can buy lots in an area that has a good rental market (I actually don't know of many areas around me that don't have a good rental market) and can build for ~20% less than I can buy turn key (as I stated, I have no desire, nor the time, to try to find the really good deals and rehab them), then that makes sense to me.