HaI know that I look for my rent to cover all my PITI (Principle, Interest, Taxes, Insurance).

my objective and biased opinion are both the same, SoCal is the best place for a new investor to start investing if you are local. 

And if you miscalculate you are losing principle or tying it up for a long time to recoup in rent payments. 

She told me her situation and her main objective was to not have a foreclosure on her credit.

In Portland, heaven help you if a resident (not owner) objects to your plans in the neighborhood.3) Cost of planners, in Portland SDCs are pushing $25K/unit4) Dealing with contractors and price of supplies (like limber has tripled in the past six months)I guess if you have a non-totalitarian local govt, I'd be OK.  

Appreciation, both forced and natural, principlal pay down is what creates wealth and covers major capex.

You can reclassify your principle portion to mortgage balance.

**(doesn't include principle pay down, tax benefits, depreciation, etc.)

If that's the objective, there are even more questions to answer - not just about whether the property is suitable for building - but also if the projected cash flow will be sufficient to cover the cost of new construction.

Raising Private Capital by Matt Faircloth is a good start to learning the basic principles of investing and different forms of creative financing.