If a burned to the ground property is a better deal for you to rebuild than the original owner I would bet people will be standing in line to buy it. 

I have asked my flooring guy I use ( wholesaler to PM companies and landlords) what floors stand up best to tenants, and he says pretty much nothing...Floors last the longest with consciencious tenants...good luck with a class c.

There is always one or two tenants that try make a stand, or really are that far under water that they can't pay their rent.

They payed it, but my property manager at the time did not under stand what I wanted in the contract, and I deployed before I was able to see the final draft.

Of course I stand to learn a lot from all of you and that mountain of information is intimidating for a newbie investor, but we're pretty determined to make it happen and I'm trying to act now instead of putting anything off.

What can we do to ensure we stand on the legal side of the law?

If in years ahead economic times are hard and rents go to flat or actually go down but the costs of the building go up because the newly rehabbed was just carpet,paint,and knobs the owners stand to lose a lot of money.   

I don't see how that circumstantial evidence could be seen as proof that would be persuasive to a judge if you had to go that route.From what I read of California landlord and tenant law you may have to have evidence of a similar standard if you want to charge this to a security deposit and have it stand up if the tenant challenges you.

I guess that's why these projects were fun and stand out. 

From this stand point multi-member LLC (LLC taxed as partnership) will give you better protection, consult with your asset protection attorney, because this is not my area of expertise.