Minor advice: if possible, live in the worst unit (often the third floor of a 3-family but not always), rent out the others for higher rents and upgrade your own unit as you go.Then if others need work, once the first one is done, move down to the second-worst if a vacancy opportunity presents itself, etc.With your student loans, I'd recommend talking to a good mortgage broker or loan officer sooner rather than later, so you know what you can realistically afford.

We had the same issue come up with one of the worst tenant experiences of my fledgling real estate career.

Good way to learn about the worst neighborhoods in Indianapolis though. 

These don't seem to be the worst, but they are not good.

I need a lender that can provide 80% LTV on a primary residence two flat... right now it appears that 75% is all I can get which isn't the worst but not ideal.

I am wondering though, what is the worst case scenario for me if I carry o a plan like this?

Part of the business I guess, but these situations are the worst.

For those wondering how I'll get approved as a student w/little savings, I've found a family member who will personally guarantee the commercial loan for a few K worst comes to worst. 

I guess my question in investing in California then becomes, what is the worst case scenario and how do I prepare for that?

Worst case, you can clear title in  five years by filing a Quiet Title action seeking relief under CA's Adverse Possession Statute. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?