Multiplication is better than addition.

What additional data would you gather remotely? 

IF you have the funds to purchase a place in LA, then you can begin looking at options around you, You also have to recognize that if you purchase a place and inherit the tenants, all the downsides that come with rent control, the eviction process and of course the time and stress that can be associated with it.

PM me if you would like additional information.

In addition to a legal egress window, a bedroom must also have a closet.

You can also structure in some additional terms about who and how significant repairs are handled, but that will also tend to tip in the owner/investors favor.* When selling a property on a lease option, realtor commissions are not necessary.* Check your state laws and talk to a REI attorney and escrow/title company about facilitating the transaction and all the needed paperwork for your area.

( addition tore off, or are you exaggerating the roof)  based on your project details, id guess 45k+ in rehab .... building a second story would be out of the picture for me.  

At which point I would have to come out of pocket ($18k additional for $80k total renovation) to succeed in renovating the property to its full appraisal potential. 

Will you need to put additional time and money into this to make it a viable rental?

There is going to be a special assessment soon of about 2,000 + 2 years of an additional 150/month.I can't deal with tenants calling me constantly with every little thing that is wrong (my pipes tend to clog) so rental would be contingent on tenant handling these things on their own.If I do sell, I would put the money in a mutual fund.What do you think?