All in all it seems to me that getting the additional bedroom and bathroom to be legal should cost under $1,000 for permitting and inspection and potential drywall repair. 

A FHA 203k loan does cover purchase/repairs for a home you’re going to occupy.

I had to go through mold remediation and do several repairs before I could move into the property.

I do also have a bit more repairs and is another reason I don't want more properties cause I'm still fixing this one and I'm doing all work myself to keep the expense low

I don’t do flips so my buy and hold repairs are different.  

I'm planning to turn at least one of the 1/1's into a vacation rental which should earn at least 1200/mo (very conservative estimate, probably higher).Purchase price: 295,000Down payment: 25%, $73,750Loan term: 30 yearsInterest rate: 5.375%P&I: $1238.94/moClosing costs: $2800Gross scheduled income: currently $2650/mo, I'm planning on $3000/mo minimum with STR, so $36,000/yearLess Vacancy/Repairs: 10% = $3600*Gross Operating Income: $32,400Less taxes ($4700 (high estimate)), Insurance ($900), and Water/Sewer ($1800):  $7400Net Operating Income: $25,000Less Debt Service: $14,867Before Tax Cash Flow: $10,133CAP rate: 8.47%COC: 13.24%*yes, I know that's low for Vacancy/Repairs/CapEx, thats because we do our own work and management.  

Doesn't your broker provide assistance? 

@Bhuja Parikh Lots of stuff south of 290 priced below $175k, but that doesn't leave a lot of room for repairs.

Not a rule/reg, but I would wonder whether the repairs/rebuilds from the fires still have contractors in Ventura tied up. 

One tenant has lived there for 13 years & disabled with assistive devices in place, so most likely won't move out.In a C class area.