The net is my father-in-law didnt realize he owned this property and it suddenly became an issue that he did not want to address.The short version of the story is I really hadnt given ANY consideration to getting involved, but figured "WTF", make an offer and see what happens (I SHOULD have kept my trap shut and asked what he wanted for it, however I still more than doubled my investment - so I didnt do too bad)... he accepted and had a deed produced in a matter of days.

Rooming houses were common a heck of a long time before I was even born. 

Good luck in Richmond @Jay Hinrichs...I'm a native, have lived there since I was born and know Richmond up and down, in and out!!

@Dave FriedmanThat's the oos trap. 

@Chris Ruud, I am born and raised in the bay area, so I feel you on the real estate prices.My father invested in turnkey properties in the Dallas area because CA prices are wild

I may have been born yesterday but i wasnt born last night ;) 

Address the issue of "trapped" equity by pulling cash out after you stabilize unit "B". 

Mail fraud is something that is usually tacked on to real estate and finance violations,  use the mail to further an illegal activity,, that gets serious.There are too many clowns in the center ring and  the gurus know a sucker is born every minute, there's no shortage of folks wanting to get rich the  easy way.Just selling to buyers you know doesn't cure any issue, it's the buyer's side and it takes some effort to be properly educated, too lazy or too naive to know the difference between an education and guru hype or a real estate site that needs traffic for advertising dollars.......it's beyond me, especially when you hand them a basic education for free! 

You should be able to replace the innards of a toilet, change the wax ring, change all the plumbing under a sink (supply lines, shut off valves, p trap and other pipes) and above a sink (faucet and cartridges), replace the agitator dogs of a washer, replace the heating element of an electric dryer, change the air filter of your central air, replace the ignitor of a gas furnace, replace heating elements of an electric furnace, replace the ballast of a fluorescent light, the list goes on if you want to make more money in rental property near you.

This "wisdom' was acquired by making mistakes, some of which were costly, and most of which were born of trusting the wrong people and just following what I thought were the best numbers.Again, I really like your methodology!