I told them they could stay there at no charge till the bank evicted them and made them sign a hold harmless.

I grew up in RI and my dad is a carpenter in the area (was as my parents recently moved to FL) but that got me into that market with some local presence as I stayed in the Boston area. (4) properties and 14 units later, I still find myself investing in RI as the price point is about half of Boston but the cash flow is similar.

My first impression is that your numbers in the current economic climate seem a little rosy.I also have friends that are builders and I try to stay in touch with them on costs as we mostly do "to the studs" renovations when we buy a place. 

The lessons you learned the hard way in 2008 will be invaluable now, and it’s great that you’re aiming to stay small-scale and within your comfort zone of Sacramento, which gives you an advantage of knowledge in that market.Given your experience, I'd say start by focusing on three key areas to build confidence and minimize risks:Budget Control: Over-renovating was one of the big mistakes you mentioned.

Stability: Homeowners tend to stay in their homes longer than renters, which can create a more stable environment for families and children.

First time in 3 years we have had to file a claim with over 150 airbnb stays.

As a young investor, stay organized, keep learning, and don't be afraid to ask for help.

Go check and see what others are charging.I guess I have to ask what does it offer that would make people want to stay there?

Until democracy and the US collapses, DC housing will stay in demand. 

Personally I would stay away from this.