I'd lean towards a full demolish as well...either way, headaches, but I'd rather have ground up headaches than remodel headaches ;) not to mention speed

@Peter Mckernan I’m in SoCal as well.

You may be allowed another use besides residential, however you need to confirm that with planning department where this property sits. 

I went last year as well and it was a ton of fun and got to meet a ton of top investors there. 

I hope you're all doing well.

Those are just a few points and I know many others have more thoughts as well!

LOL  If there's going to be problems down the road, their advice or forethought as to the planning/building of the structure, at least the flooring/layering on top of the existing structure, is going to be sooooo vital. 

I would be talking to an agent in the area and buy a home that has been owner occuppied and well cared for..

I plan to put up a solar camera on the front end of the garage.

well since banks basically dont do this kind of lending at all for 95% of folks.HML  PML or  money partners is the only way to do it .. short of using your own cash.