After working in student housing, I would definitely make sure you are properly covered when you're renting to students.

I was interested in a super-skinny strip of land adjacent to property I currently own, but there were MANY liens against it because it was owned by Brandon Barber, who'd gone to jail for misc. property development misdeeds. 

Once you have all of the figures, you can decide if it is worth the effort.Yes, you could take it Subject To if done properly.

So the owner may end up having improper restoration work done, doesn't smoke seal necessary areas properly, then when a renovation company comes in and finishes the work, come next hot summer season, the smell of smoke comes back). - If they look like they might consider selling, you have to start looking for restoration companies that also renovate who guarantee their work so you can figure out the cost. 

They also have many if not all of the features that QBO has to offer including bank feeds (will automatically import transactions that hit the bank), Rules (you set a rule and when it recognizes an expense from lets say "Home Depot" it will automatically code it to "Repairs & Maintenance", and also has Classes to code transactions to the proper building.  

Toll Brothers are building a development of single family homes across the street from my property starting at $500K.

The Torrance ADU development standard states "ADUs are not allowed in the Hillside Overlay or Local Coastal Overlay District unless the ADU is created from converting existing permitted square footage," which I assume are the areas you're talking about.

I cannot think of a single area in town where there isn't significant demand for rentals.I'm local so if you want some specific advice or help please reach out, I'm happy to help.Unpermitted additions often are not an issue if the construction is done properly. 

Let me know if you'd like to connect, always looking to build and develop a sense of 'community'. 

With the exception of very specific venues like Ren Fairs and the like.I can see something like this working well in Austin where some of the land can't be developed due to zoning for trees; however, it could prove difficult in a smaller town mostly because do you have 10+ businesses looking to even open there?