The house is a 2 bed, 1 bath.The shop also has a kitchenette and bathroom,Total land size is 9000 sq ft.

Purchase price: $175,000 Cash invested: $10,000 Currently living in: 690 square feet, 2 Bed/1 Bath condo. 1st floor, pool, jacuzzi, dog park, laundry facility.

Especially if what you're saying is you're going to leverage $300k to buy a $1.2million retail property. 

Such a broad question..Every asset class has a different cap rate..Downtown office building vs multi family vs retail.. you need to be more specific 

Even the 3.5% for an FHA loan just to purchase a decent 1-2 bed/bath condo to househack in my area would be 470-500k (not to mention the mortgage insurance premiums each month) are too expensive for me, and would not put me in a good financial position to invest in other areas.

Why would you ever pay retail or above (as many turnkeys are) as an investment?!

We need to rent out our 2 bed 2 bath in Glendale California.

According to Rentometer, 3/2 homes nearby average $1850 (so about $600/room); 1bd/1ba apartments average $1070.I plan to rent out two rooms with a shared full bath and share the master bed/bath with another family member.

When you're clear about what would deal would actually make you feel happier and more secure when you go to bed at night then you'll know your deal parameters.

Rents are $2800/mo in total 5 units 2 bed/1 bath.