What is the age of the home?

As mentioned previously, all expenses directly related to a specific property to include mortgage interest and depreciation are taken on Schedule E for that property. 

The home inspection revealed probably about 6-8000 of total repairs that need to be done but very few related to the requirements for the C of O.

My suggestion is to look for property in relatively good condition where you can get it rented right away." 

Aaron McCarty if you look at the formulas/metrics in isolation then the numbers don’t mean much.The formulas/numbers is all relative, especially as everyone/business has different goals and risk tolerance.Compare the results to the alternative, example: compare the historical stock market return on blue chips to an A class area.

All of this is pretty darn relative.

As for the granny flat, I'm not sure how the law works in CA, but I'm wondering how that notice to vacate relates to eviction? 

Just diving in at age 50.  

And if you’re short on time like I am, I recommend the Audible version to listen to when you’re doing relatively mindless tasks like getting ready in the mornings, driving, cooking, etc.

Anything else goes... as long as it's legal, and real estate related. ;)Excited to hear what everyone comes up with!