The home is worth about $450,000 (Southern California) and paid off (inherited).

Case law also supports 'grandfathered' fences that are inherited through the property purchase and passed inspection at transfer. 

Also, what if the old tenant got inheritance from a rich uncle and seriously wanted to exercise his option while the new tenant was installed in the morning property?

One-at-a-time flips are going to take too much time finding and closing deals.  3 good sized turn around/value adds ought to be enough, I think.The only other thing i can think of would be note investing in a self-directed, inherited Roth IRA. 

Any existing leases are inherited by you, including all T&C's.

We had a guest we inherited from the previous owner who stole and pawned all our TVs which eventually we got back from the pawn shop.

Economies of scale and lessening work load with a larger asset.3.

If the sister's had died, their heirs could have inherited their share of the property.Luckily in that case the sister's were alive (in their 80s) and were willing to sign that they sold the property 50 years prior clearing up the issue.

The 1031 exchange lets you transitiona your portfolio at will bits at a time which lessens risk and keeps the essence of who you are as an investor.  

The owners had inherited the home from a relative that had passed away.