Perhaps a nice 1950's built bungalow.Always hire a 3rd party property inspector to give you an unbiased feel for the home.

If peace of mind is your #1 goal I would suggest working with one of the bigger longer standing companies.

However, in any deal you must still bring some value to the table (capital, experience, ability, resources, etc) otherwise the remaining parties have no motivation for your involvement.As a new investor with no demonstrable track record capital is your easiest ticket to the table.  

There would be a $800 permit fee and they would raise the property tax 2.5 times for B&B and raise the tax 4 times for stand alone units. 

As you continue to shop around, you'll start to recognize things that stand out in a property. 

Both parties might be interested to make a deal by tomorrow.

and it seems to me google campus abuts the landfill..probably not an issue for this person being on the other side of the freeway.. it is amazing how much gets dislosed in a CA transaction these days.. also while I got you on the line I had dinner with my buddy who has the container home building company you have a standing invite to tour on your next trip north.. !!!

I've never understood this logic, unless you plan to buy one house, only one house, and no more, ever, and paying out a couple hundred bucks a month to keep the place standing is going to kill you.On average you'll probably have lower vacancy in an SFH anyway.

Or, how would you write up this deal to be "fair" to both parties? 

As you're experiencing right now, the toughest part is actually JUMPING IN!