Tenant occupied properties can be attractive to investors if cash flowing...no one wants to buy someone else's problem. 

I’ve heard that this neighborhood doesn’t really have any problems from a social worker but outside areas aren’t good. 3/4 units are currently rented at $900 each, renters pay utilities.

Hello,My wife and I recently found a property that fits all of the things we are looking for, perfect location, price, rooms, etc. except for one problem: The previous owner was a smoker :( Does anyone have experience buying/renting out/living in a home previously owned by smokers?

Furthermore, California has a very anti-landlord and anti-real estate investor government that can cause you all sorts of other problems as well. 

That’s a tough call, but a good problem to have—congrats on your first STR!

Problem comes when you get party animals.

@Blake McWilliams This is a most challenging problem with both residential and commercial investors.

Not problem.

I am curious of where people find these low priced homes, if it is my location that is the problem, and if $30k-$40k homes are still possible to flip?

Never a problem.